The One Big Beautiful Bill Act (OBBBA) is the most comprehensive tax and policy reform passed in recent years. Signed into law in 2025, the bill touches nearly every sector of the economy—impacting individuals, business owners, healthcare providers, and even farmers.
While the legislation spans hundreds of pages, the good news is that you don’t need to read through the fine print to understand how it could affect you. To simplify things, we’ve put together a summary of the six most important changes from the OBBBA “cheat sheet.” Whether you’re a current client or simply exploring your options, these highlights will help you prepare for the months ahead.
1. Permanent Lower Individual Tax Rates
For individuals and families, one of the most significant provisions is the permanent extension of reduced income tax rates. These were originally set to expire, but OBBBA locks them in for good. This means most taxpayers will see long-term relief on their personal income tax bills, allowing for more predictable financial planning in the years ahead.
2. Enhanced Child and Family Benefits
The Act expands several family-friendly provisions. Most notably, the Child Tax Credit and related deductions see both an increase in amounts and greater flexibility in eligibility. For families with dependents, this translates into meaningful savings at tax time and improved support for childcare and education costs.
3. Business Owners Benefit from the QBI Deduction and Bonus Depreciation
Small and medium-sized business owners stand to gain from two major extensions. First, the Qualified Business Income (QBI) deduction—which allows pass-through entities to deduct up to 20% of eligible income—has been made permanent. Second, bonus depreciation remains in play, giving companies the ability to write off major purchases and investments immediately instead of over several years. Together, these provisions free up cash flow and encourage reinvestment in business growth.
4. Estate and Gift Tax Relief
High-net-worth individuals should take special note: the OBBBA raises the estate and gift tax exemption significantly. This means families can transfer more wealth to heirs and beneficiaries without being subject to federal estate taxes. For those engaged in long-term wealth planning, this creates powerful opportunities to preserve assets for future generations while minimizing tax exposure.
5. Healthcare Funding and Compliance Changes
The healthcare sector is also heavily affected. OBBBA introduces phased cuts to Medicaid funding and new reporting and eligibility requirements. While these changes are targeted at state and institutional levels, individuals may see indirect impacts such as altered coverage options, shifting premium costs, or new qualification rules. Employers offering health plans should stay informed to ensure compliance and avoid surprises.
6. Expanded Agricultural and Energy Incentives
Farmers and energy-conscious businesses gain from updated credits and supports. In agriculture, higher reference prices for staple crops like corn, wheat, and soybeans aim to stabilize farm incomes. On the energy side, companies can leverage enhanced credits for efficiency upgrades and renewable projects—creating both environmental and financial benefits.
The OBBBA is broad in scope, but its underlying message is clear: now is the time to revisit your financial and business strategy. Lower taxes, new deductions, and expanded credits provide opportunities for individuals, families, and companies alike. However, the law also introduces compliance challenges—particularly in healthcare and reporting requirements—that could catch some off guard.
As always, proactive planning is key. Whether it’s structuring your business to maximize the QBI deduction, reassessing your estate plan, or taking advantage of bonus depreciation, we recommend reviewing your strategy with a trusted advisor.
Final Thoughts
Legislation as sweeping as OBBBA is both a challenge and an opportunity. The challenge lies in navigating the details—but the opportunity is in turning those details into financial advantages.
If you’d like to understand how these changes apply to your personal situation or your business, our team is here to help. Reach out today to schedule a consultation—we’ll make sure you’re not only compliant, but also positioned to benefit from these historic reforms.