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

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

The One Big Beautiful Bill Act

Curated by: Rubric Advisors

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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

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

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