The recently enacted One Big Beautiful Bill Act (OBBBA) introduces a range of changes to the U.S. tax code and federal programs, including several permanent and favorable changes for business taxpayers aimed at boosting investment and simplifying compliance:

• 100% bonus depreciation made permanent — Businesses can now fully expense qualifying property (e.g., machinery, equipment, leasehold improvements) in the year it’s placed in service.
• Expanded Section 179 expensing — The maximum deduction has increased to $2.5 million, with a higher phase-out threshold, and will be indexed for inflation starting in 2026.
• Immediate deduction for R&D costs — Domestic research and experimental expenditures can be fully deducted when incurred, improving cash flow for innovative firms.
• Business interest deduction rules improved — The EBITDA-based limitation returns, allowing more interest expense to be deducted.

While many of the act’s provisions target businesses, several are directly relevant to individuals and families. Here are some of the most notable and beneficial updates:
• Standard deduction increase — The standard deduction has been permanently raised, offering meaningful tax relief across all filing statuses.
• Expanded child tax credit — Families will benefit from a higher credit amount, with a larger refundable portion and inflation indexing.
• Senior deduction (temporary) — Taxpayers aged 65 and older may qualify for a temporary deduction of up to $12,000 for joint filers.
• SALT deduction cap raised — The cap on state and local tax deductions has increased significantly, which may benefit those in high-tax states.
• Charitable contributions — Non-itemizers can now deduct modest cash donations, while itemizers face a new threshold based on adjusted gross income.
• Tip income and overtime pay exemptions — New deductions for tip income and overtime pay.
• Car interest deductibility — Certain vehicles purchased with a loan may qualify for interest deductibility, even for non-itemizers.

For a more detailed breakdown of the act’s financial provisions, read our comprehensive article.

If you have questions about how these changes may affect your personal finances or tax planning, feel free to reach out to Mrudul Sharma mrudul.sharma@CLAconnect.com, or for general inquiries, contact us.

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, investment, or tax advice or opinion provided by CliftonLarsonAllen LLP (CLA) to the reader. For more information, visit CLAconnect.com.

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