On July 4, 2025 President Trump signed H.R. 1, commonly known as the One Big Beautiful Bill, into law. This tax and spending measure solidifies numerous tax law changes originally enacted in the Tax Cuts and Jobs Act (TCJA) of 2017 and signed into law during President Trump’s first term in office.

Aprio has been closely monitoring this bill since its inception and is prepared to offer comprehensive insight and analysis on the many notable tax provisions within this new piece of legislation. 

Impact on Individuals

For individuals, this new legislation makes many of the tax rate cuts that were set to expire at the end of 2025 permanent. Some of the most notable provisions for individuals include:

• Expanding the standard deduction and making the termination of the personal exemption permanent.
• Temporarily increasing the limitation of the itemized deduction of state and local taxes, commonly known as the SALT cap.
• Making the increased estate and gift tax exemption permanent.

You can find more information on these and other tax law changes that will impact individuals in the article: What Trump’s One Big Beautiful Bill Means for Individual Taxpayers.

Impact on Businesses

For businesses, the impact on taxes by the new legislation includes:

• An allowance for immediate expensing of research and development costs
• Increased Section 179 and bonus depreciation provisions
• An enhanced qualified business income deduction

The legislation also provides for making Qualified Opportunity Zones permanent.

You can learn more about the business tax provisions within the article: A New Dawn for Business Tax: How the One Big Beautiful Bill Reshapes the Tax Landscape.

Impact on Energy Credits

The One Big Beautiful Bill restricts and phases out certain energy credits that were enacted as part of the Inflation Reduction Act (IRA). Generally, these credits are phased out more quickly than they would have been absent the passage of this legislation.

For more information on the changes to the energy credits see the article: Energy Credits on the Clock: What Taxpayers Need to Know About Accelerated Expiration Dates.

Impact on International Tax

The bill makes significant changes to certain international tax provisions including the:

• Foreign tax credit
• BEAT
• Net CFC Tested Income (formerly known as Global Intangible Low-Taxed Income (GILTI)
• Foreign-Derived Deduction Eligible Income (FDDEI) (formerly known as Foreign-Derived Intangible Income (FDII))

Previous versions of the bill also included adding a “Revenge Tax” against foreign taxes that the administration claimed disproportionately affected US citizens. However, this provision was removed from the final version of the bill that was enacted.

To read more about what was included in the bill see the article: From FTC to BEAT: Understanding the Future of International Tax After H.R. 1.