A QUICK OVERVIEW

At its core, OBBBA extends many of the 2017 Trump-era tax cuts that were set to expire at the end of 2025. Among the changes:

• Lower individual income tax rates remain permanent
• The increased standard deduction is here to stay
• $31,500 for joint filers
• $23,625 for head of household
• $15,750 for others (single filers or married individuals filing separately) 

• Increase to State and Local Tax (SALT) deduction cap
• $40,000 cap for 2025
• 1% annual increase through 2029
• Phase out at incomes above $500,000 

• Personal exemptions remain eliminated
• Higher estate and gift tax exemptions continue
• The $750,000 deduction cap for home mortgage interest is locked in
• Additional senior deduction of $6,000 for qualifying seniors from 2025 through 2028
• Increased Child Tax Credit of $2,200 

• Auto Loan Interest Deduction
• Applies to new U.S.-assembled vehicles only (2025-2028)
• Up to $10,000 interest deductible
• 20% phaseout starts at MAGI $100k ($200k joint)
• Available even to non-itemizers and for AMT 

• AMT Changes
• Permanently increases AMT exemption
• Phaseout thresholds reset to $500k (single) / $1M (joint), inflation-indexed 

In short, the bill keeps in place many provisions that individuals and families have relied on for the past several years. But for business owners, there are some new rules worth paying close attention to.