The House passed the Senate’s version of the “One Big Beautiful Bill Act” (OBBA), marking a significant overhaul to federal tax policy. The signing reflects a major pivot in legislative priorities toward domestic production and pro-business tax policy, KGKG reported.
The new law restores 100% bonus depreciation, reinstates immediate expending for U.S. -based R&D, terminates dozens of inflation Reduction Act (IRA) clean energy programs, and permanently extends individual tax cuts. It also introduces fresh incentives for middle-class families and manufacturers.
Latest Tax Highlights
100% Bonus Depreciation Restored Businesses can immediately expense qualifying assets placed in service after January 19, 2025, eliminating the previously scheduled phase-down. This change is expected to drive accelerated capital investment across industries.
New Bonus Depreciation for Manufacturing QPP Qualified production property enjoys 100% bonus depreciation until 2029, a significant benefit for domestic manufacturers and supply-chain operators.
Immediate Expensing of U.S R&D Domestic research costs are now fully deductible under new Section 174A. Foreign R&D must still be amortized over 15 years. Companies with capitalized domestic R&D expenses from 2022-2024 can elect a catch-up deduction, which could significantly improve cash flow for firms engaged in innovation.
IRA Clean Energy Incentives Terminated The law eliminates many IRA-era green tax credits, including 179D, 45L, and electric vehicle credits. 179D terminates for properties beginning construction after June 30, 2026. 45L terminates for all dwelling units that are closed or leased after June 30, 2026.
Axios reported: President Trump on Friday signed his signature tax and spending legislation, the “big beautiful bill,” into law, meeting a July 4 deadline that at times appeared out of reach.
Why It Matters: It’s a huge achievement for Trump and congressional Republicans that will reshape the federal fiscal policy for years to come. The megabill cuts funding for social safety measures, extends tax cuts – primarily for the wealthy – and finances Trump’s immigration agenda.
Trump signed the measure as part of a highly staged White House Independence Day celebration feature a bomber jet flyover and the annual fireworks on the National Mall.
What They’re Saying: Trump called the bill “the greatest victory yet” while addressing a crowd at the White House in a speech his administration has kept its promises.
ABC.net.au reported: US President Donald Trump’s massive tax cut and spending bill has passed the US House of Representatives by four votes.
The so-called “big beautiful bill” passed with a 218-214 vote on Thursday afternoon, local time, marking a significant victory for the Republican president.
It will fund his immigration crackdown, make his 2017 tax cuts permanent and deliver new tax breaks that he promised during his 2024 campaign.
The bill also cuts health and food safety net programs and wipes out dozens of green energy incentives.
It would add $US3.4 trillion ($5.17t) to the nation’s $36.2 trillion debt, according to the nonpartisan Congressional Budget Office.