This summer brought one of the most monumental tax law changes in recent history. With the passage of the One Big Beautiful Bill (OBBB) Act, taxpayers, businesses, and organizations are now navigating a dramatically reshaped tax landscape. Over the past month, Perkins & Co experts have explored the law’s many provisions, offering practical insights on what it all means.
As we close out our OBBB Act blog series, here’s a recap of what we’ve covered—and where you may want to take a closer look.
Individuals: Expanded Deductions and Permanent Provisions
In our Individual Tax Update, we explored how OBBBA reshapes the tax outlook for households across income levels. While some popular provisions from the Tax Cuts and Jobs Act (TCJA) are now permanent, new temporary deductions offer relief to working individuals.
Key changes include:
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Permanent TCJA tax rates and higher standard deductions
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Temporary deductions for qualified tips, overtime, and select auto loan interest
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An expanded SALT deduction cap
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An increase in the estate, gift, and GST exemption from $13.99M to $15M per individual
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The creation of “Trump Accounts” for young adults, plus enhancements to 529 plans and tax credits
Businesses: More Expensing, Fewer Limits
In Business Provisions, we highlighted the many ways OBBBA boosts small and midsize businesses. By expanding deductions and making certain tax breaks permanent, the law creates room for strategic investments and planning flexibility.
Key updates include:
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Full restoration of bonus depreciation
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Increased Section 179 expensing limits
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Permanent QBI (qualified business income) deduction
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Revisions to PTET elections, interest limitations, QSBS exclusions, and reporting thresholds
Opportunity Zones: Expanded and Extended
In Opportunity Zone Changes, we looked at how OBBBA cements the OZ program as a long-term fixture of U.S. tax policy. Originally set to sunset in 2026, the program is now permanent—with a new emphasis on transparency, rural investment, and targeted economic development.
Highlights include:
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Permanent status for OZs with redesignation every 10 years (starting 2027)
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Introduction of a new rural OZ category with enhanced incentives
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10% basis step-up after five years of investment
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Reduced improvement thresholds in rural areas
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Expanded reporting and compliance rules for Qualified Opportunity Funds
International: Higher Rates, Higher Stakes
In Key International Tax Changes, we examined how multinational companies are affected by the tightening of cross-border rules. The OBBBA increases effective tax rates on foreign income and introduces a new remittance tax, signaling a more aggressive U.S. posture on outbound earnings.
Key provisions include:
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Increased effective rates on GILTI and FDII
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Introduction of a 1% excise tax on outbound remittances
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Revisions to the BEAT regime and elimination of select retaliatory tax proposals
Real Estate: Boosted Deductions and Incentives
In Real Estate Highlights, we detailed how real estate investors and developers stand to benefit from a variety of expanded deductions and long-term planning tools. The law supports both energy-efficient projects and traditional real estate investments.
Key provisions include:
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Permanent 100% bonus depreciation
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Expansion of Section 199A
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Reforms to interest deduction limitations
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Updates to Sections 45L and 179D for energy-efficient residential and commercial properties
R&D: A Win for Innovation
In Reviving R&D, we unpacked one of the most significant provisions for innovators: the return of immediate expensing for domestic research and experimental costs. For many companies, this change reverses the cash flow crunch that began in 2022 when R&D costs were forced into five-year amortization.
Key takeaways:
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Immediate expensing for domestic R&D resumes in 2025
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Small businesses may retroactively deduct expenses from 2022–2024
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Foreign R&D remains subject to amortization
Nonprofits: New Incentives, New Obligations
In Nonprofit Tax Provisions, we covered how OBBBA brings both opportunity and complexity to the tax-exempt sector. While new giving incentives may encourage contributions, higher excise taxes and tighter rules may also impact operations and planning.
Key changes include:
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A new above-the-line charitable deduction beginning in 2026
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Tax credits for Scholarship Granting Organizations
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Higher excise taxes on large endowments and nonprofit executive compensation
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Adjustments to corporate charitable deduction limits
Looking Ahead
The OBBBA represents a major turning point in federal tax policy—but many questions remain. IRS guidance and further legislation are expected to fill in the gaps. If you’re unsure how these changes affect your tax position or planning strategy, Perkins & Co is here to help.