How the One Big Beautiful Bill Act Opens Doors for Wealth Preservation

Tax law is rarely simple and new legislation can often feel like a puzzle. The One Big Beautiful Bill Act (OBBBA) is no exception. This landmark bill brings some of the most significant tax changes in a generation and while it introduces a few temporary measures, the main story is permanence.

By making key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) permanent, this new law offers individuals and businesses a clearer runway for long-term financial planning. But what does this mean for you? Let’s break it down.

Top 3 Changes with the Biggest Impact

The size of the bill can make it hard to know where to start. For most families and individuals, three changes stand out as having the most profound impact:

  1. Lower Tax Rates are Here to Stay. The bill makes the current, lower tax rates from the 2017 TCJA permanent. This provides a predictable income tax environment for the foreseeable future.
  2. A Bigger Estate and Gift Tax Exemption. Starting in 2026, the lifetime estate and gift tax exemption will rise to $15 million per person, indexed for inflation. This change opens significant new opportunities for wealth transfer for high-net-worth families.
  3. New Breaks for Families and Seniors. The bill introduces new deductions and credits. Seniors aged 65 and older can claim a new “below-the-line” deduction of up to $6,000. It also increases the Child Tax Credit and adds a new deduction for interest paid on U.S.-made cars, making it relevant to multiple generations.

Permanence vs. Temporary: What’s Locked In?

The bill’s emphasis is stability. By making several key tax provisions permanent, Congress has created a foundation for financial planning that hasn’t existed in years.

Permanent Provisions:
  • Income Tax Brackets: The lower tax rates from the 2017 TCJA are now permanent, supporting more confident long-term income planning.
  • Standard Deduction: The higher standard deduction ($15,000 for single filers and $30,000 for married couples), which is indexed for inflation, is now a permanent fixture.
  • Estate and Gift Tax Exemption: The increased exemption of $15 million per person ($30 million for couples) is now permanent, though future congressional action could change this.
  • Child Tax Credit: The $2,000 child tax credit is now permanent, with an additional provision to increase it to $2,500 between 2025 and 2028.
  • Qualified Business Income (QBI) Deduction: The 20% QBI deduction for pass-through businesses is a permanent provision.
  • Section 179: The increased Section 179 deduction limit of $2.5 million on qualifying assets is now permanent and indexed for inflation.
Temporary Provisions:

While the core of the bill is permanent, some provisions are only in effect for a limited time, including:

  • Senior Tax Deduction: A $6,000 deduction for seniors aged 65 and older is available from 2025-2028.
  • Domestic Auto Loan Interest: A deduction for up to $10,000 of interest paid on US-made autos is available from 2025-2028.
  • SALT Cap Increase: The State and Local Tax (SALT) cap is temporarily raised to $40,000 through 2029 before reverting back to $10,000.
  • Bonus Depreciation and R&D Expensing: 100% bonus depreciation and the deduction for Research and Development (R&D) costs are available through 2029.

Planning in a New, “Permanent” Environment

The permanence of these new rules affects approaches to financial planning. Guesswork over what will change in a few years is reduced.

For high-net-worth families, the new, higher estate tax exemption allows for additional gifting. If previous exemption amounts were already used, the new law provides significant additional room for gifts. Reviewing estate plans with an attorney may help take full advantage of these lifetime gifting limits and update trust documents to reflect the new law.

Business owners face a new landscape as well. Section 179 and bonus depreciation become more prominent tools for growth. In simple terms, these provisions let a business immediately deduct the cost of new equipment rather than spreading it over many years. This can improve cash flow and reduce tax bills in the year purchases are made. A key difference: Section 179 can’t create a loss, but bonus depreciation can, which offers more flexibility for business owners.

The bill also introduces “Trump Accounts” for children—a new tool for multigenerational planning. These accounts allow annual after-tax contributions up to $5,000 per child, with a $1,000 federal government contribution for children born between 2025 and 2028. Unlike an IRA, children don’t need earned income to have an account. While this is a new option, it’s a good idea to review all available savings vehicles, such as 529 plans and Roth IRAs, to choose the best fit for a family’s circumstances.

Permanence vs. Predictable

Even with so-called “permanent” provisions, future congressional action can make changes. Regular reviews of tax, estate and financial plans with trusted advisors, such as an attorney, CPA and wealth consultant, can help adapt strategies as laws evolve.

For questions on these changes and how they might affect your financial situation or for personalized guidance, reach out to Adams Brown Wealth Consultants. We can help evaluate options, update plans and make the most of the new law’s opportunities.

About Adams Brown Wealth Consultants

Adams Brown Wealth Consultants is a nationally recognized financial advisory firm delivering holistic wealth management solutions for individuals, families, and business owners. As a division of Adams Brown, a top CPA firm, the team integrates tax strategy, financial planning, estate planning, insurance and risk management, and retirement plans into a seamless experience. As a fiduciary, the firm operates under a fee-based model and is committed to providing objective, client-first advice. Adams Brown Wealth Consultants helps clients navigate complex financial decisions, from business exit strategies to intergenerational wealth transfers.