On July 4, 2025, President Donald Trump signed into law the One Big Beautiful Bill Act (OBBA)—a sweeping tax and spending bill that cements many tax rules into permanent law and introduces new deductions for individuals and businesses.
For taxpayers, families, and business owners across the country—including those in trucking, logistics, and other capital-intensive industries—the OBBA brings long-term clarity, expanded deductions, and new planning opportunities.
At Bell & Company, we’ve outlined the key provisions—and how they could affect your planning in 2025 and beyond.
Individual Tax Rates Are Now Permanent
Top individual tax rate capped at 37%
Capital gains and qualified dividend income remain capped at 20%
The 3.8% Net Investment Income Tax remains in effect on passive income
QBI Deduction Made Permanent
The 20% deduction for pass-through businesses (S Corps, partnerships, sole proprietors) is now permanent
Helps bring pass-through income in closer range to the 21% C corporation rate
Still results in a slightly higher effective rate (~30%) for pass-throughs, but this is a valuable deduction
Bonus Depreciation Restored to 100%
Businesses can now fully expense qualifying new and used property starting with property acquired after 1/19/25
Applies to personal property (trucks, trailers, equipment—also known as 1245 assets)
Real estate bonus depreciation may be available through cost segregation studies
Section 179 Expensing Limit Increased
Section 179 expense limit increased to $2.5 million
Phase-out begins at $4 million of assets purchased
Can be used in tandem with bonus depreciation for strategic asset purchases
Estate and Gift Tax Exemption Increased
Estates up to $15 million per person or $30 million per couple are exempt from the 40% estate tax (effective 1/1/26 and inflation adjusted yearly after that)
Step-up in basis at death remains in effect, allowing assets to be revalued at fair market value
SALT Deduction: Expanded and Extended
Pass-through entity (PET) tax workaround remains in place
Personal SALT deduction raised to $40,000 through 2029
Taxpayers will need to decide whether to file via the PET structure or itemize and take the expanded deduction
Business and Personal Deductions: A Closer Look
Here are several new or expanded deductions available under the OBBA:
Car loan interest on U.S.-made vehicles is deductible up to $10,000 (above-the-line), with phaseouts starting at $200,000 MAGI for joint returns.
Charitable deductions up to $2,000 for a joint couple are allowed above the line.
Trump Accounts are a new concept. Newborns through 2028 receive a $1,000 federal deposit, with parents allowed to contribute $5,000 and employers $2,500—assumed to be tax deductible, pending guidance.
Overtime pay with limits is now exempt from federal tax but still subject to Social Security and state taxes. Preliminary exemption applies to the first $25,000 for joint filers under $300,000. There is some question as to whether this applies to rate-based overtime or the full overtime amount.
Tips are also exempted on the first $25,000 earned, for joint filers with income capped at $300,000.
The much-discussed Social Security tax exemption was limited. A $6,000 exemption will apply through 2028, for joint filers earning under $150,000.
Business Interest Limitation Returns
Businesses must now add back depreciation when calculating their allowable interest deduction
This affects highly financed companies, especially in trucking or construction
Bell & Company’s Take
Bell and Company will be providing future advice and information throughout the remainder of the 2025 year as the OBBA seasons and IRS guidelines are so provided.
Interesting items to note: Almost all temporary tax law changes have sunset dates, deduction limits, and income thresholds—so be cautious when applying what you read to your specific tax situation.
The overtime pay and tip exemptions are expected to apply for all of 2025. If confirmed, this would require retroactive adjustments for wages earned in the first half of the year.
Expect updates to IRS reporting, including revised W-2 forms, which may create some complexities in Q3, Q4, and year-end payroll reporting.
We’re Here to Help You Navigate What Comes Next
These changes bring opportunity—but also complexity. Whether you're planning equipment purchases, re-evaluating your estate plan, or just trying to understand what the new law means for your next W-2, our team is ready to help.
Schedule a consultation today to plan around the OBBA:
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Final Thoughts from Bell & Company
The “One Big Beautiful Bill Act” brings major planning opportunities for business owners, trucking companies, and individuals across income levels. But some provisions include income limits, phaseouts, or strategic choices—especially around state tax deductions, equipment expensing, and wage income treatment.
As IRS guidance continues to roll out, we’ll keep you informed. In the meantime:
Let’s talk.
We can help evaluate how the OBBA applies to your unique situation—whether you’re running a fleet, filing as a sole proprietor, or planning your estate.
Stay up to date:
We’ll continue sharing updates and planning tools as more details are released.
For the IRS’s plain-language summary, visit:
irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors