On May 21st, 2025, the “One Big Beautiful Bill Act” was reported to the House of Representatives for consideration and debated well into the morning hours of May 22nd. After a series of votes and procedural motions, the bill was passed and sent to the Senate. If the Senate passes the bill, as many analysts expect, it could be signed into law by July. The bill has already generated extensive discussion, especially as tax reform was a key element of former President Trump’s recent campaign promises.
At nearly 1,000 pages, the legislation spans numerous topics, but this article focuses exclusively on Title XI, which addresses tax policy. Officially titled “THE ONE, BIG, BEAUTIFUL BILL” under the jurisdiction of the Committee on Ways and Means, Title XI outlines a sweeping overhaul of the current tax code. Below is a breakdown of each subtitle and the key provisions it introduces:
Subtitle A – “Make American Families and Workers Thrive Again”
Subtitle A aims to make permanent many of the provisions from the 2017 Tax Cuts and Jobs Act (TCJA) and introduce several new measures intended to provide direct tax relief to individuals and families.
Key Provisions:
- Permanently extends TCJA’s individual tax rates.
- Permanently extends and increases TCJA’s standard deductions.
- Maintains the Child Tax Credit at $2,000 per child, with potential enhancements for certain households.
- Makes permanent and increases the Qualified Business Income (QBI) deduction for pass-through entities to 23%.
- Increases the base estate tax, gift tax, and generation-skipping transfer tax exemption amount to $15 million.
- Caps the benefit of itemized deductions and eliminates some deductions (e.g., personal exemptions).
- Exempts qualified tips and overtime pay from federal income taxation for individuals, with an income threshold.
- Makes car loan interest tax-deductible.
- Introduces Money Accounts for Growth and Advancement (MAGA Accounts), a new tax-advantaged account type similar to HSAs or IRAs.
- Authorizes a $1,000 federal deposit into MAGA accounts for eligible individuals born between 2025 and 2029.
- Expands 529 plans to include expenses for K-12 education, homeschooling, and credentialing programs.
- Enhances HSA rules: higher contribution limits, spousal catch-up contributions, and qualified expenses now include fitness and wellness programs.
Analysis: These changes are designed to be popular with middle-income earners, parents, and small business owners. The introduction of MAGA Accounts and the tax-free treatment of tips and overtime reflect a political effort to resonate with working-class voters. However, the bill also reduces federal revenue by extending costly TCJA provisions without specified offsets.
Subtitle B – “Make Rural America and Main Street Grow Again”
This subtitle focuses on incentivizing investment in small businesses and rural economies.
Key Provisions:
- Extends 100% bonus depreciation for qualified property acquired and placed into service after January 19, 2025 and before January 1, 2030.
- Extension of the expensing of domestic research and experimental (R&E) expenditures.
- Maintains favorable tax treatment for foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI).
- Increases the Section 179 expensing limit to $2.5 million and phaseout to $4 million.
- Repeals the $600 1099-K reporting threshold and restores the previous $20,000/200 transaction threshold.
- Raises the 1099-MISC and 1099-NEC reporting threshold from $600 to $2,000.
- Introduces new credits for sound recording productions and small manufacturers.
- Exempts interest on rural or agricultural real estate loans.
- Expands allocations under the Low-Income Housing Tax Credit (LIHTC).
- Recognizes more facilities as rural emergency hospitals under Medicare.
- Repeals the 10% excise tax on tanning services.
Analysis: Subtitle B contains several targeted wins for rural and small-town economies, many of which benefit from agricultural, energy, or light manufacturing industries. By reversing the 1099-K threshold, the bill also directly addresses concerns from the self-employed and gig economy workers.
Subtitle C – “Make America Win Again”
Subtitle C aggressively rolls back green energy incentives while tightening enforcement and restricting access to tax benefits for undocumented immigrants.
Key Provisions:
- Terminates tax credits for clean vehicles ($7,500), home energy upgrades, clean hydrogen, and more.
- Repeals credit transferability provisions and limits green investment credits.
- Disallows premium tax credits and Medicare access for undocumented immigrants.
- Imposes a new excise tax on remittance transfers.
- Requires SSNs for education tax credits.
- Implements artificial intelligence tools for fraud detection in Medicare and tax administration.
- Strengthens enforcement on misused COVID-era Employee Retention Credit (ERC) claims.
- Increases penalties for unauthorized IRS data disclosures.
- Terminates the IRS’s Direct File initiative and places limits on contingency-fee-based tax prep services.
Analysis: This subtitle signals a strategic pivot away from clean energy incentives and toward more traditional fossil fuel support and fraud prevention. It may score political points, but also risks undermining energy transition efforts.
Subtitle D – “Increase in Debt Limit”
Key Provision:
- Increases the statutory debt limit by $4 trillion.
Analysis: This provision acknowledges the substantial cost of the bill. It attempts to ensure there is no immediate fiscal ceiling blocking its execution but raises questions about long-term deficit implications.
Final Thoughts
Title XI of the One Big Beautiful Bill Act represents a broad restructuring of the tax landscape. From a $15 million estate tax exemption to tax-free overtime pay, Title XI delivers broad-based cuts aimed at individuals, families, and businesses alike. Supporters will frame it as pro-growth, pro-family, and pro-small business. Critics will argue it prioritizes immediate political wins over sustainable fiscal planning. As the Senate prepares to review the legislation, taxpayers and advisors alike should watch closely. If passed, it will likely reshape financial strategies across income levels, industries, and geographic regions.
Please feel free to contact our team to discuss this further or reach out to your Senator prior to their vote.
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Benjamin Meck, CPA, CFP®, Deputy Managing Director of Accounting Services
Benjamin joined Baldwin Family Office in 2023 after spending 8 years gaining experience in corporate, cost, construction, and property accounting. He holds a B.S.B.A in both Accounting and Finance from Bloomsburg University of Pennsylvania. He earned the CPA designation in 2022 and CFP® designation in 2025. He is a member of the Pennsylvania Institute of Certified Public Accountants, the National Association of Tax Professionals, Snow and Ice Management Association, and the Construction Financial Management Association.