Inside the One Big Beautiful Bill Act: A deep dive into its tax provisions

On July 4, 2025, President Trump signed into law the sweeping tax reform and spending reconciliation bill known as the One Big Beautiful Bill Act (OBBBA). The bill's enactment marks a major legislative achievement for the president, House Speaker Mike Johnson (R-LA) and Senate Majority Leader John Thune (R-SD). First introduced in the House of Representatives on May 20, 2025, the OBBBA (P.L. 119-21) includes major tax reform and spending cuts, and reignited debates over tax policy, fiscal responsibility and the role of government spending. It comes at a critical juncture as certain provisions of the Tax Cuts and Jobs Act (TCJA) were set to sunset at the end of 2025.

Negotiations over the bill’s more controversial tax provisions, such as the increase of the state and local tax (SALT) deduction, the repeal and phaseout of certain Inflation Reduction Act (IRA) credits and Medicaid reforms, were long debated in both the House and the Senate as Republicans raced for the July 4 goal.

With the newly enacted bill officially signed into law, Baker Tilly is closely monitoring the long-term impacts. This page serves as a guide to everything you need to know about the One Big Beautiful Bill Act tax provisions, which will be regularly updated with key insights and important information on how this legislation impacts taxpayers across the U.S.