Tax Planning

The One Big Beautiful Bill Act

The One Big Beautiful Bill Act made key TCJA provisions permanent, including individual tax rates, the QBI deduction, and estate tax exemptions, while modifying SALT caps and phasing out certain clean energy credits.

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Individual Tax Rate Changes

Tax Cuts and Jobs Act individual rates made permanent (top rate stays at 37%)
Seven bracket structure maintained: 10%, 12%, 22%, 24%, 32%, 35%, 37%
Without this law, rates would have reverted to higher pre-2017 levels in 2026
All bracket thresholds continue to be indexed annually for inflation

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Individual Tax Rate Changes

Tax Cuts and Jobs Act individual rates made permanent (top rate stays at 37%)
Seven bracket structure maintained: 10%, 12%, 22%, 24%, 32%, 35%, 37%
Without this law, rates would have reverted to higher pre-2017 levels in 2026
All bracket thresholds continue to be indexed annually for inflation

SALT Deduction and Standard Deduction

State and local tax (SALT) deduction cap raised from $10,000 to $40,000
SALT cap phases out for higher-income taxpayers above certain thresholds
Standard deduction amounts remain elevated and continue inflation indexing
Taxpayers in high-tax states see partial relief but not full pre-TCJA deductibility

Estate and Gift Tax Exemption

Elevated TCJA lifetime exemption made permanent ($13.99M per person in 2025)
Married couples can shelter up to $27.98M combined using portability
Exemption continues to be indexed for inflation in future years
Removes the 2026 sunset that would have cut exemption roughly in half

Business Owner Provisions

20% qualified business income (QBI) deduction made permanent for pass-throughs
100% bonus depreciation restored for qualified capital investment purchases
Opportunity Zone incentives extended for qualified opportunity fund investments
Pass-through entity tax (PTET) workaround preserved for state tax deductions

Clean Energy Credit Changes

Several clean energy tax credits face accelerated phaseouts or elimination
Electric vehicle credit eligibility narrowed with stricter sourcing requirements
Home energy efficiency credits and solar credits begin phasing down
Business energy incentives see modified timelines, review project deadlines carefully

Key Takeaways

Permanent rates and exemptions provide more certainty for long-term planning
Review estate plan to take advantage of confirmed high exemption levels
Accelerate clean energy projects that may lose credit eligibility soon
Consult your advisor to model the combined impact of these changes on your situation

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The information above is for educational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. Any historical figures are for illustration only, and past performance does not guarantee future results. Tax laws, regulations, and contribution limits change frequently, the details here may become outdated. Individual circumstances vary. Consult a qualified financial advisor, CPA, or attorney for guidance specific to your situation. Rubric Advisors is registered with the California DFPI; registration does not imply a certain level of skill or training.

The One Big Beautiful Bill Act

Individual Tax Rate Changes

SALT Deduction and Standard Deduction

Estate and Gift Tax Exemption

Business Owner Provisions

Clean Energy Credit Changes

Key Takeaways

Individual Tax Rate Changes

SALT Deduction and Standard Deduction

Estate and Gift Tax Exemption

Business Owner Provisions

Clean Energy Credit Changes

Key Takeaways

Related Topics

Alternative Minimum Tax (AMT) Planning

Itemized vs Standard Deduction

Primary Residence Tax Benefits

The One Big Beautiful Bill Act

Individual Tax Rate Changes

SALT Deduction and Standard Deduction

Estate and Gift Tax Exemption

Business Owner Provisions

Clean Energy Credit Changes

Key Takeaways

Individual Tax Rate Changes

SALT Deduction and Standard Deduction

Estate and Gift Tax Exemption

Business Owner Provisions

Clean Energy Credit Changes

Key Takeaways

Related Topics

Alternative Minimum Tax (AMT) Planning

Itemized vs Standard Deduction

Primary Residence Tax Benefits