Moving expense deduction. Permanently eliminates the moving expense deduction( with an exception for members of the military and their families in certain circumstances).
Section 529 expenses. Expands the allowable expenses that can be paid with tax-free Section 529 plan distributions.
Alternative Minimum Tax( AMT). Makes permanent the TCJA’ s increased individual AMT exemption amounts.
Gift and estate tax exemption. Permanently increases the federal gift and estate tax exemption amount to $ 15 million for individuals and $ 30 million for married couples beginning in 2026, with annual inflation adjustments going forward.
Tip income deduction. For 2025 – 2028, creates an above-the-line deduction( meaning it’ s available regardless of whether a taxpayer itemizes deductions) of up to $ 25,000 for tip income in certain industries, with income-based phaseouts( payroll taxes still apply).
Qualified overtime pay deduction. For 2025 – 2028, creates an above-the-line deduction of up to $ 12,500 for single filers or $ 25,000 for joint filers for qualified overtime pay, with income-based phaseouts( payroll taxes still apply).
Qualified passenger vehicle loan interest deduction. For 2025 – 2028, creates an abovethe-line deduction of up to $ 10,000 for qualified passenger vehicle loan interest on the purchase of certain American-made vehicles, with incomebased phaseouts.
Bonus deduction for senior taxpayers. For 2025 – 2028, creates a bonus deduction of up to $ 6,000 for taxpayers age 65 or older, with income-based phaseouts.
Itemized deductions. Limits itemized deductions for taxpayers in the top 37 % income bracket, beginning in 2026.
Trump accounts. Establishes tax-favored“ Trump Accounts,” which will provide eligible newborns with $ 1,000 in seed money, beginning in 2026.
Adoption tax credit. Makes the adoption tax credit partially refundable up to $ 5,000, with annual inflation adjustments( no carryforwards allowed).
Clean energy tax credits. Eliminates several clean energy tax credits, generally after 2025, including the clean vehicle, energy-efficient home improvement and residential clean energy credits.
Affordable Care Act tax credits. Restricts eligibility for the Affordable Care Act’ s premium tax credits.
Charitable contributions. Creates a permanent charitable contribution deduction for nonitemizers of up to $ 1,000 for single filers and $ 2,000 for joint filers, beginning in 2026. Additionally, the OBBBA imposes a 0.5 % floor on charitable contributions for itemizers, beginning in 2026.
Except where noted, these changes are effective for tax years beginning in 2025. JULY 2025 | 04