“One Big Beautiful Bill” Officially Signed Into Law

On July 4, 2025, President Trump signed the “One Big Beautiful Bill Act” (H.R. 1) into law, following final passage by both chambers of Congress: a 51–50 Senate vote on July 1 and a narrow 218–214 House vote on July 3.

With enactment complete, key tax provisions are now in effect, impacting individuals, businesses, and industries nationwide.

Notably, several provisions are retroactively effective for the 2025 tax year which opens up immediate planning opportunities.

For Businesses:

• 100% Bonus Depreciation is reinstated for qualifying property acquired and placed in service after January 19, 2025.

• Immediate expensing of domestic R&D costs returns, along with options to accelerate deductions for previously capitalized R&D expenditures for eligible taxpayers.

For Individuals:

• Tax brackets first introduced in 2018 are now permanent and will continue to be adjusted for inflation.

• The state and local tax (SALT) deduction cap is raised from $10,000 to $40,000.

• A new $6,000 deduction is available for taxpayers age 65+, subject to income-based phaseouts.

• The child tax credit is increased from $2,000 to $2,200.

We will continue to provide updates as additional guidance and technical details become available. Please contact your HHM advisor to discuss how these changes may affect your planning for 2025 and beyond.

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