OBBBA Tax Provision Summary Chart 2025 July 16, 2025 | Page 4

BUSINESS( cont.)

CHANGE PREVIOUS LAW OBBBA CHANGE IMPACT ON YOU / YOUR BUSINESS
Exclusion for Employer Payments of Student Loans
Exclusion for employer-paid student loans was temporary, expiring after 2025.
Exclusion is made permanent.
Encourages employers to offer student loan repayment benefits as a tax-free fringe benefit, enhancing recruitment and retention.
Enhancement of Employer- Provided Child Care Credit
Credit was 25 % of expenses, up to $ 150,000.
Credit increased to 40 %( 50 % for small businesses), up to $ 500,000($ 600,000 for small businesses), with inflation adjustments.
Increases the value and availability of the credit, incentivizing businesses to provide or subsidize child care for employees.
Intangible Drilling and Development Costs for Book Minimum Tax
Book minimum tax did not allow deduction for IDCs.
Allows deduction for IDCs for book minimum tax purposes.
Businesses in oil and gas can deduct IDCs for book minimum tax, reducing their minimum tax liability and improving after-tax cash flow.
Expansion of Qualifying Income for Publicly Traded Partnerships( PTPs)
Qualifying income for PTPs limited to certain activities.
Expands qualifying income to include hydrogen, carbon capture, advanced nuclear, hydropower, and geothermal.
PTPs in these sectors can now qualify for favorable tax treatment, potentially increasing investment and growth in these energy industries.
Reduction of Transfer and Manufacturing Taxes for Certain Firearms
$ 200 tax applied to all NFA firearms.
$ 0 tax for non-machinegun / destructive device firearms; $ 200 remains for machineguns / destructive devices.
Reduces tax burden for manufacturers and sellers of certain firearms.

OBBBA Tax Provision Summary Chart reaadvisory. com 4