Tax Implications of the One Big Beautiful Bill Act 2026

The One Big Beautiful Bill Act, also known as the OBBBA, is a comprehensive legislative bill signed into law by President Donald Trump on July 4th, 2025. This piece of legislation is a very large bill that encompasses multiple areas of legislation, including taxation, infrastructure and investment, social policy, and regulation and administration. The OBBBA was designed to consolidate and streamline a wide variety of federal provisions into a single piece of legislation. The OBBBA is supposed to serve several purposes as a piece of legislation. First, it is meant to be used for consolidation and simplification. This bill was meant to gather many proposed reforms into a large, widely encompassing piece of legislation to allow lawmakers to pass several changes at once rather than through several, smaller bills. The second purpose of this bill is to address economic growth and stability. The tax code reforms, business incentives, and infrastructure investments present in the OBBBA are aimed at boosting domestic productivity and support long-term U.S competitiveness in an increasingly globalized market. The third purpose of this bill is to address fairness and modernization. There are several provisions present in the OBBBA that are specifically designed to close tax loopholes and create new tax credits for families and workers. Lastly, the fourth purpose of the bill is to increase government program efficiency. There are provisions in the bill that are aimed at streamlining both government rules and oversight to reduce redundancy, increase program accountability, and improve how federal programs interact with individuals and businesses. For the purposes of this course, we will be covering the tax implications of the One Big Beautiful Bill Act, rather than covering the Act in its entirety. Therefore, we will only be going over the Tax changes addressed in the Act, which is Title VII of the OBBBA, under Finance.