Obbba Summary

One Big Beautiful Budget Act — Tax Provisions Summary ## Overview The One Big Beautiful Budget Act (OBBBA) was signed into law in 2025. Its primary tax purpose was to make most Tax Cuts and Jobs Act (TCJA) provisions permanent, extend others, and introduce several new tax benefits. This is a major law for EA candidates studying for exams administered in 2025 and beyond. > Exam note: The IRS updates exam content on a rolling basis. EA candidates should confirm which provisions are currently testable based on their exam window. Provisions effective in 2025 and 2026 may appear on exams before full implementation guidance is available. --- ## TCJA Provisions Made Permanent The TCJA individual provisions were set to expire after 2025. The OBBBA extended most of them permanently: | Provision | TCJA/OBBBA Status | |---|---| | Reduced individual income tax rates (10/12/22/24/32/35/37%) | Made permanent | | Increased standard deduction | Made permanent (continues indexed for inflation) | | $10,000 SALT cap | Made permanent (with modifications — see below) | | Doubled child tax credit | Made permanent | | Elimination of personal exemptions | Made permanent | | $750,000 mortgage interest limit | Made permanent | | 20% QBID (Section 199A) | Made permanent and modified | | AMT exemption increases | Made permanent | --- ## SALT Cap — Modified The OBBBA retained the $10,000 SALT deduction cap but introduced modifications for certain taxpayers. Proposals debated in Congress included higher caps for married filers or residents of high-tax states. Candidates should be aware that the base cap remains $10,000 but legislative modifications may have changed the precise amounts. > Exam tip: Know the baseline $10,000…