One Big Beautiful Bill Act signed into law on July 4, 2025
Here is a comprehensive summary of President Trump’s “One Big Beautiful Bill” (officially the One Big Beautiful Bill Act), signed into law on July 4, 2025:
Massive Tax Cuts
- Permanently extends 2017 tax cuts.
- Raises State and Local tax deduction (SALT) cap to $40K for incomes under $500K (reverts after 5 years).
- New perks: no tax on tips, overtime, and Social Security benefits (via deduction).
- Introduces “Trump Accounts” (tax-deferred savings for kids, until 2028).
- Boosts child tax credit by $200.
Small‑Business Boost
- Permanent 20→23% pass-through deduction.
- Doubling of Section 179 (tax incentive that allows businesses to immediately deduct the full cost of qualifying equipment and property, rather than depreciating it over several years) expensing to $2.5 million, immediate write-offs.
Clean-Energy Rollbacks / Fossil Fuel Support
- Phases out Biden-era clean-energy credits.
- Reduces coal royalties; encourages oil/gas drilling and repeals silencer tax.
Medicaid and Supplemental Nutrition Assistance Program (SNAP) Cuts
- ~12% Medicaid spending cuts with work requirements.
- SNAP changes: stricter eligibility and increased state cost-sharing.
Planned Parenthood Funding Blocked (Temporarily)
- Medicaid restrictions aimed at planning groups, including Planned Parenthood; court injunction blocks defunding until July 21.
Immigration and Defense Surge
- Additional $150 billion for ICE, $150 billion plus for border enforcement and deportations.
- Military investments like “Golden Dome” system, air-traffic control upgrades, Coast Guard funding.
Education: School Choice and Scholarships
- Federally backed tax-credit scholarships (up to $1,700 full credit to nonprofit donors).
- Federal support for private school choice.
Semiconductors and AI Incentives
- Substantial tax breaks to chipmakers and semiconductor production.
Other Noteworthy Provisions
- Exempts silencers (gun suppressors) from a $200 tax.
- Opens bond financing for spaceports (launch sites).
- Adds seafood sector support (via Alaskan carve-outs).
- Creates National Garden of American Heroes with $40 million funding.
© 2025 Bishop & Adkins, P.A. All Rights Reserved.