“Big Beautiful Bill” Summary of Selected Tax Provisions

Course Description:

The "One Big Beautiful Bill Act," often called the Big Beautiful Bill (BBB), is a sweeping budget reconciliation. Designed to make permanent the 2017 Trump tax cuts, the bill aims to deliver substantial tax relief to American families, workers, farmers, and small businesses. Key provisions include locking in and expanding the child tax credit, eliminating taxes on tips, overtime, and car loan interest, and providing enhanced deductions for seniors. The legislation also expands the §199A small business deduction, renews 100% immediate expensing for factories and equipment, and increases the death tax exemption for family farms. Supporters claim the bill will boost take-home pay for families, raise wages for workers, and create or save millions of jobs over the next four years, fueling significant economic growth and investment, particularly in rural and Main Street America.

However, the bill is not without controversy. It includes significant reductions in non-military government spending, notably imposing stricter eligibility requirements and cuts to programs like SNAP and Medicaid. The BBB  also scales back clean-energy tax credits and extends the cap on state and local tax (SALT) deductions, while allocating an additional billions for defense spending. Critics have raised concerns about the bill's projected addition to the national debt.

This course is an overview providing reference to selected individual, education, business, retirement, insurance, international, and estate tax provisions enacted or indexed for inflation by the BBB. The resulting major tax changes carry special meaning to the tax practitioner and return preparer. The course is intended to be a resource for tax professionals and staff alike to gain easy access to the most important major changes enacted by TCJA.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

- Apply selective changes imposed by the Big Beautiful Bill (H.R. 1) relating to individual income taxes by identifying:
  a. modifications to tax rates & personal exemptions,
  b. deduction of car loan interest,
  c. changes to the child tax credits,
  d. new educational incentives & student loan       discharge rules,
  e.  mortgage interest & suspended deduction     provisions,
  f.  remittance transfer changes; and
  g. charitable deduction changes.
- Point out the new income exclusion (tips and overtime).
- Recognize BBB changes to energy credits.
- Identify increased BBB exclusion amounts for estate, gift, and generation skipping transfer taxes.
- Specify BBB changes to expensing, the limitation on non-corporate losses, reporting requirements, and research and experimentation.
- List excise taxes imposed by the BBB on exempt organizations and recognize the de minimis entry privilege termination on foreign transactions.