The tax landscape may be on the verge of a major transformation. The House of Representatives has passed the proposed budget reconciliation legislation—dubbed the “One Big Beautiful Bill”—which spans nearly 400 pages of sweeping tax reforms. While the bill has yet to become law, it signals strong bipartisan momentum to extend expiring Tax Cuts and Jobs Act (TCJA) provisions, reduce compliance burdens, and introduce new tax breaks for individuals, families, and businesses. Here are the Top 10 most significant tax changes under consideration:

  1. Permanent Lower Individual Tax Rates and Increased Standard Deduction: TCJA rates and brackets would become permanent, with standard deductions boosted through 2028 ($32,000 for joint filers).

  2. Expanded QBI Deduction: The Section 199A pass-through deduction would increase from 20% to 23% and become permanent, with broader eligibility for service businesses.

  3. Restoration of 100% Bonus Depreciation: Businesses could fully deduct the cost of qualifying property placed in service between January 19, 2025, and January 1, 2030.

  4. Immediate Expensing of R&D Costs: Domestic research expenditures could once again be fully deducted for tax years 2025–2029, reversing prior amortization rules.

  5. $4,000 Senior Deduction: A new deduction for taxpayers 65+ would phase out above $75,000 (single) or $150,000 (joint), offering targeted relief to aging Americans.

  6. Elimination of Tax on Tips and Overtime Pay: Aimed at supporting lower-income and service-sector workers, this provision exempts these earnings from income tax.

  7. SALT Deduction Cap Increase: The state and local tax deduction limit would rise from $10,000 to $30,000, with income-based phaseouts to restrict high earners.

  8. Paid Family and Medical Leave Credit Made Permanent: Businesses could receive a permanent credit, with broader eligibility and revised calculation methods.

  9. Section 179D and 45L Energy Incentives: Green building credits and energy-efficient home incentives remain strong, with a $5,000 per-unit window closing after 2025.

  10. Estate, Gift, and GST Exemptions Increased: Lifetime exemption amounts would jump to $15 million (indexed for inflation) for high-net-worth estate planning.

While these provisions offer promising tax-saving opportunities, the bill’s future remains uncertain as it moves to the Senate, where revisions are likely. Businesses and individuals should prepare now to understand the potential benefits and risks. If passed, this legislation will shape the tax code—and financial planning—for years to come.

Link Journal of Accountancy – Tax provisions of Senate Finance’s version of the budget bill

Link Journal of Accountancy – AICPA endorses some Ways and Means tax provisions, signals concern for others

Link Journal of Accountancy (updated as article was published on June 25) – AICPA proposes changes to Senate bill that would help most US businesses