Stay ahead of the curve with our comprehensive 2025 tax bill update. Explore the latest on crucial tax items, where each provision stands in Congress, and the next steps in the legislative process. Whether you’re a CPA, EA, or financial professional, our AI tax research and AI tax planning tools ensure you’re always up to date. Read on for a detailed breakdown—and see how agentic AI in tax can help you and your clients stay compliant and proactive. Ready to future-proof your tax strategies? Try our AI-powered tax tools today!
Key Tax Provisions in the One Big Beautiful Bill Act
| Tax Provision | Description | Current Status | Next Steps |
| Extension of 2017 Tax Cuts | Permanently extends individual and corporate tax cuts from the 2017 Tax Cuts and Jobs Act. | Passed House; included in Senate version. | Awaiting reconciliation between House and Senate versions. |
| Standard Deduction Increase | Increases standard deduction to $26,000 for joint filers, $19,500 for heads of household, and $13,000 for single filers for tax years 2025–2028. | Included in both House and Senate versions. | Finalization pending in conference committee. |
| Additional Deduction for Seniors | Provides an extra $4,000 deduction for taxpayers over 65, phasing out at higher income levels. | Included in House version; Senate proposes $6,000 deduction with different phase-out thresholds. | Differences to be reconciled in conference. |
| Child Tax Credit Expansion | Increases credit to $2,500 per child through 2028, then reverts to $2,000. | House version proposes $2,500; Senate version suggests $2,200. | Awaiting agreement on final amount. |
| SALT Deduction Cap Adjustment | Raises state and local tax deduction cap to $40,000 for households earning up to $500,000. | Included in House version; Senate proposes maintaining current $10,000 cap. | Subject to negotiation in conference. |
| Exclusion of Tips and Overtime from Income | Temporarily exempts up to $25,000 in tips and $12,500 in overtime pay from taxable income for tax years 2025–2028. | Included in both versions with varying phase-out thresholds. | Harmonization of provisions required. |
| Estate and Gift Tax Exemption Increase | Raises exemption to $15 million per individual by 2026, adjusted for inflation. | Included in both versions. | Final details to be confirmed. |
| Car Loan Interest Deduction | Allows deduction of interest on qualified car loans for personal vehicles from 2025 through 2028. | Included in both versions. | Awaiting final legislative approval. |
| Green Energy Tax Credit Repeal | Phases out tax credits for wind and solar energy projects; introduces new tax on projects using Chinese components post-2027. | Included in both versions with slight variations. | Final provisions to be settled in conference. |
| Medicaid and SNAP Reforms | Implements stricter work requirements and shifts more costs to states. | Included in both versions with differing specifics. | Reconciliation of differences needed. |
Legislative Timeline
July 2025: Conference committee expected to reconcile differences between House and Senate versions.
May 22, 2025: House passes OBBBA with a narrow 215–214 vote.
June 29, 2025: Senate advances its version of the bill, incorporating several amendments.
June 30, 2025: Senate continues deliberations, aiming for final passage by July 4, 2025.
💡 How to Stay Ahead with AI Tax Tools
Tax changes like these can create planning opportunities—or landmines. Here’s how to stay proactive:
- Use an AI Tax Research Tool to track the latest bill versions, committee memos, and tax code updates.
- Leverage an AI Tax Planning Tool to simulate how proposed rates or deductions impact clients’ multi-year tax projections.
- Explore Agentic AI in Tax workflows to automatically flag clients affected by estate or pass-through income changes.
Stay Ahead: How Agentic AI in Tax Can Help
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Don’t wait until the bill becomes law—leverage our AI tax solutions to safeguard your clients and your practice. Request a demo today!