One Big Beautiful Bill Act (OBBBA or B3)

• Permanently extends the Tax Cuts and Jobs Act (TCJA) individual tax brackets and lower rates rather than allowing them to expire after 2025.
   
• Income tax brackets continue to be indexed for inflation.
   

• Standard deduction increased and made permanent:
  • 2025 — $15,750 (single), $23,625 (head of household), $31,500 (married filing jointly).
  • Indexed for inflation thereafter.
   
• Personal exemptions remain permanently eliminated.
   

• Child Tax Credit made permanent and increased to ~$2,200 per qualifying child with inflation indexing beginning after 2026.
   
• $500 credit for other dependents (like elderly parents or non-child dependents) also made permanent.
   

• SALT cap temporarily increased from $10,000 to $40,000 for individual filers through 2029 (phase-outs above $500,000 AGI).
   

• Additional senior deduction ($6,000 for age 65+) for 2025–2028 (phases out with income).
   
• “No Tax on Tips” deduction: up to $25,000 in qualified tips deductible annually (phase-outs based on income).
   
• New deduction for auto loan interest on qualifying U.S.-assembled vehicle loans (up to $10,000). 

• “No Tax on Overtime” deduction: up to $25,000 in qualified overtime (phase-outs based on income).
   

• Qualified Business Income (QBI) deduction (20%) is made permanent for eligible pass-through income.
   
• Expanded Health Savings Account (HSA) contribution limits for certain income categories.
   
• Mortgage interest deduction limits from TCJA continue permanently (up to $750,000 of acquisition debt).
   
• Casualty loss deduction rules remain limited to federally or certain state-declared disasters.
   

• AMT exemption amounts and phaseouts from TCJA made permanent for individuals (higher thresholds).
   

• Estate and gift tax exemption increased to $15 million per person (indexed for inflation), permanently.
   

• Certain clean energy and electric vehicle tax credits are ended early compared to prior law.
   

• Most lower tax rates and larger deductions under the 2017 tax law are now permanent.
   
• New deductions and credits (tips, car interest, senior deduction) provide extra relief through 2028.
   
• Higher limits on SALT and estate exemptions benefit taxpayers in high-tax states and those with estates.
   
• Some energy and clean-energy tax incentives are reduced or repealed earlier than previously scheduled.
   

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