14 July 2025
See how JMBM’s Global Hospitality Group® can help you.
One Big Beautiful Bill Act – Key Tax Provisions
by JMBM’s Taxation and Trusts & Estates Department
The One Big Beautiful Bill Act (“OBBB”) was signed into law on July 4th, 2025, ushering in sweeping changes to the U.S. federal tax landscape. The OBBB permanently extends and expands many provisions of the Tax Cuts and Jobs Act (“TCJA”), and introduces significant updates that will impact both individuals and businesses. The following are among the more notable provisions in the OBBB.
Income Tax Rates
The OBBB permanently extends the reduced individual income tax rates and brackets originally enacted by the 2017 TCJA, which were previously set to expire after 2025.
Taxpayers will continue to benefit from the lower income tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
Estate, Gift, and Generation-Skipping Transfer Tax Exemption
The OBBB permanently raises the federal estate, gift and generation-skipping transfer tax exemption to $15 million per individual (or $30 million for married couples), effective for estates of individuals and gifts made after Dec. 31, 2025. This exemption amount will continue to be indexed for inflation in future years.
SALT Deduction and Passthrough Entity Tax
The OBBB temporarily raises the cap on the state and local tax (“SALT”) deduction from $10,000 to $40,000 for 2025, with the cap increasing by 1% annually through 2029. Starting in 2030, the cap reverts to $10,000. However, for taxpayers with modified adjusted gross income over $500,000, the available SALT deduction phases down by 30% of the excess income, but never below $10,000 (with the threshold amount also increasing by 1% annually through 2029). CONTINUE READING →