On May 13, 2025, the U.S. House Committee on Ways and Means (the “Committee”) released the full text of “The One, Big, Beautiful Bill,” offering wide-ranging benefits for business and individual taxpayers. Notably, the bill includes the following key provisions:
- An increase in the qualified business income deduction under IRC §199A from 20% to 23%;
- A raised cap on the state and local tax (SALT) deduction to $30,000 ($15,000 for married filing separately), with a phasedown beginning at $400,000 AGI ($200,000 for separate filers);
- A temporary restoration of 100% bonus depreciation for qualifying property placed in service between January 20, 2025, and December 31, 2029;
- Reinstatement of immediate expensing for domestic research and development (R&D) expenditures for tax years 2025 through 2029;
- A revised overall limitation on itemized deductions, capping the tax benefit at 35% for high-income taxpayers;
- New above-the-line deductions for qualified tips, qualified overtime compensation, and interest on passenger vehicle loans, available through 2028;
- An additional standard deduction of up to $4,000 for seniors and blind taxpayers, subject to AGI-based phaseouts; and
- A permanent increase in the estate and gift tax exemption to an inflation-adjusted $15 million starting in 2026.
For more information please see the section-by-section summary of the bill provided the Committee and the full text of the bill. It is generally accepted that this bill will be amended several times before it is enacted into law. We will continue to monitor the status of the legislation and provide updates when key developments occur.
The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice. This communication may not be applicable to your specific circumstances and may require consideration of non-tax and other tax factors if any action is to be contemplated. Please contact your tax professional prior to taking any action based on this information. Accuity assumes no obligation to the reader of any changes in tax laws or other factors that could affect the information contained herein.