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One Big Beautiful Bill Act #293326

Course Overview

Credit

Amount

CPA

5.5

EA / OTRP

Course Author: Paul J. Winn CLU ChFC Field of Study (CPA): Taxes Field of Study (EA/OTRP): Federal Tax Law

Course Description

Publish/Revision Date: This course was published on 1/16/2026.

Sweeping new legislation passed on July 4, 2025, titled “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14” and referred to as the One Big Beautiful Bill Act (OBBBA) became law. The One Big Beautiful Bill Act Tax Provisions course examines the tax provisions of the Act, beginning with those provisions that are immediately effective for 2025, followed by provisions that become effective in 2026 and beyond. The new law makes permanent many of the tax provisions of the Tax Cuts and Jobs Act (TCJA) and makes changes to existing tax law, some permanent and others temporary.

A brief explanation of existing tax law prior to OBBBA’s passage is provided, and appropriate context is added to facilitate understanding of the pre-enactment environment and the impact of the legislative changes. The course will discuss both the individual and business tax provisions and is organized along effective-date lines and whether the principal effect will be experienced by individual or business taxpayers.

Table of Contents

Introduction1

Chapter 1 – Individual Taxpayers 2025 Effective Date2

Introduction	2
Chapter Learning Objectives	2
Standard Deduction Increased and Made Permanent	2
Standard Deduction Eligibility	2
Standard Deduction Amounts	2
Standard Deduction for Blind and Senior Taxpayers	3
Standard Deduction Summary	3
Deduction for State & Local Taxes Temporarily Increased (SALT Deduction)	3
Reduction of Limitation Based on Income	3
Most Personal Exemptions Permanently Eliminated, Senior Exemption Authorized	4
Child Tax Credit Increased	4
Child Tax Credit Phaseout and Nonrefundable Amounts	4
Social Security Number Requirement	5
Credit for Other Dependents	5
Limits on the CTC and ODC	5
Claiming CTC and ODC	6
Adoption Credit Now Partially Refundable	6
Eligible Child	6
Qualified Adoption Expenses	7
Qualified Adoption Expenses not required for Special Needs Adoptions	7
The Adoption Credit & Exclusion Benefit	8
Timing of the Credit/Exclusion	8
Benefit Phased-Out at Higher Taxpayer MAGI	9
Benefit may be Carried Over	9
Recognizing Indian Tribal Governments for Purposes of Determining Whether a Child Has Special Needs for Purposes of The Adoption Credit	9
OBBBA Gives Tribal Governments Power to Declare "Special Needs" Status	10
Tax on Tips Reduced	10
Qualified Tips Defined	10
Tax on Overtime Reduced	10
Qualified Overtime Compensation Defined	11
Deduction Limited by Modified Adjusted Gross Income	11
Car Loan Interest Deduction	11
Qualified Passenger Vehicle Loan Interest Defined	11
Applicable Passenger Vehicle Defined	11
Tax Credits for Purchase of Electric Vehicles Terminated	12
OBBBA Ends Electric Vehicle Tax Credits	12
Postsecondary Credentialing Expenses Now Qualified Higher Education Expenses	12
Extension of Rules for Treatment of Certain Disaster-Related Personal Casualty Losses	13
OBBBA Extends Casualty Loss Claim Rules	13
Summary	13
Chapter 1 Review	14

Chapter 2 – Business Taxpayers 2025 Effective Date15

Introduction	15
Chapter Learning Objectives	15
Third-Party Network Reporting	15
OBBBA Repeals Third-Party Network Reporting	15
Bonus Depreciation	15
OBBBA Makes Bonus Depreciation Permanent, Increases Percentage	16
Qualified Property	16
Used Qualified Property	16
Increased Dollar Limitations Apply to Expensing Depreciable Assets	17
OBBBA Permits Special Depreciation Allowance for Qualified Production Property	17
Qualified Production Property Defined	17
Exception to Original Use Requirement	17
Qualified Production Activity Defined	17
Recapture	18
Research and Experimentation Expenditures	18
OBBBA Allows Immediate Expensing of Domestic Research & Experimentation Expenses	18
Domestic Research and Experimentation Expenses Incurred 2022 - 2025	18
Small Business Research and Experimentation Transition Rules	18
Limitation of Business Interest Allows Increased Deduction	18
OBBBA Increases Amount of Deductible Business Interest Expense	18
Floor Plan Definition of Motor Vehicle Expanded to Include Trailers and Campers	19
Spaceports Treated Like Airports for Tax-Exempt Financing	19
Spaceport Defined	19
Credit for Foreign Taxes Paid Modified	19
OBBBA Affects Foreign Tax Credit	19
Repeal of Deferral in Taxable Year Determination of Specified Foreign Corporations	19
OBBBA Repeals SFC Option to Elect Different Start of Tax Year From Majority U.S. Owner	19
Nonprofit Community Development Activities in Remote Native Villages	20
OBBBA Eliminates Recognition of Gain on Transfer of Assets from Certain Subsidiaries	20
Residential Construction Contracts Exception to PCM	20
OBBBA Enlarges PCM Exception	21
Expansion of Qualified Small Business Stock Gain Exclusion	21
OBBBA Increases Exclusion Amount, Adds Tiered Holding Periods & Increases Asset Limit	21
Treatment of Certain Qualified Sound Recording Productions	21
OBBBA Permits Immediate Expense Deduction of Sound Production Costs	22
Exclusion of Interest on Loans Secured by Rural or Agricultural Real Property	22
OBBBA Excludes Portion of Certain Interest Received by Lenders from Income	22
Qualified Lender Defined	22
Real or Agricultural Real Estate Defined	22
Qualified Real Estate Loan Defined	22
Treatment of Capital Gains From Sale of Certain Farmland Property	23
OBBBA Allows Four-Year Recognition of Gain on Farmland Sale	23
The Rules Relating to Farmland Capital Gains Installment Payments	23
Timing of Installment Payments	23
Failure to Make Timely Installment Payments	23
Election of The Installment Arrangement	24
Qualified Farmland Property	24
Qualified Farmer	24
Cost Recovery for Energy Property	24
OBBBA Eliminates Five-Year Energy Property Accelerated Cost Recovery	24
Treatment of Payments from Partnerships to Partners for Property or Services	25
OBBBA Treats Partner Providing Certain Property or Services to Partnership as Non-Partner	25
Enforcement Provisions Concerning COVID-Related Employee Retention Credits	25
OBBBA Imposes Penalties for ERTC Due Diligence Failures	25
Penalty for Due Diligence Failure	25
Normal Limitation on Assessments Extended	26
Imposition of a Retroactive Deadline for Filing COVID-ERTC Claims	26
Extension for Claiming Income Tax Refund for Wages Paid If ERTC Disallowed	26
Summary	27
Chapter 2 Review	27

Chapter 3 – Business Taxpayers Energy-Related Changes 2025 Effective Date29

Introduction	29
Chapter Learning Objectives	29
Modification of Tax Credit for Nuclear Power Production	29
OBBBA Eliminates Nuclear Power Production Credit for Prohibited Foreign Entities	29
Qualified Nuclear Power Facility Defined	29
Qualified Commercial Clean Vehicle Credit Terminated	30
OBBBA Ends the Commercial Clean Vehicle Credit	30
Sustainable Aviation Fuel Credit Eliminated	30
OBBBA Ends Sustainable Aviation Fuel Credit	30
Advanced Manufacturing Production Credit Modified	30
OBBBA Makes Various Changes to Advance Manufacturing Credit	30
Termination Of Alternative Fuel Vehicle Refueling Property Credit	31
OBBBA Accelerates End of Alternative Vehicle Refueling Property Credit by 5 ½ Years	31
Termination Of Energy Efficient Commercial Buildings Deduction	31
OBBBA Ends Deduction for Efficient Buildings Construction after June 30, 2026	32
Termination of Clean Hydrogen Production Credit	32
OBBBA Ends Clean Hydrogen Production Credit Five Years Early	32
Termination of and Restrictions on Clean Electricity Production Credit	32
OBBBA adds Clean Electricity Credit Restrictions & Shortens Period Available	32
Termination and Restrictions on Clean Electricity Investment Credit	33
OBBBA Ends Wind & Solar Credits Early & Disqualifies Prohibited Foreign Entities	33
Restriction on Extension of Advanced Energy Project Credit Program	33
OBBBA Eliminates Advanced Energy Credit Restoration	33
Extension and Modification of Clean Fuel Production Credit	33
OBBBA Modifies, Extends and Eliminates Part of Clean Fuel Production Credit	34
Restrictions on Carbon Oxide Sequestration Credit	34
OBBBA Eliminates Carbon Sequestration Credit to SFEs & Foreign-Influenced Entities	35
Intangible Drilling and Development Costs Taken into Account for Purposes of Computing Adjusted Financial Statement Income	35
OBBBA Modifies IDCs Treatment for Adjusted Financial Statement Income	35
Income from Hydrogen Storage, Carbon Capture, Advanced Nuclear, Hydropower, and Geothermal Energy Added to Qualifying Income of Certain Publicly Traded Partnerships	36
OBBBA Expands Definition of Qualifying Income for PTPs	36
Allow for Payments to Certain Individuals Who Dye Fuel	36
OBBBA adds Excise Tax Refund for Dyed Diesel Fuel & Kerosene	36
Determination of Deduction Eligible Income	36
OBBBA Addition of Excluded Items Reduces Deduction-Eligible Income	37
Termination of New Energy Efficient Home Credit	37
OBBBA Terminates New Energy Efficient Home Credit 6½ Years Early	37
Summary	37
Chapter 3 Review	38

Chapter 4 – Individual Taxpayers 2026 & Later Effective Date40

Introduction	40
Chapter Learning Objectives	40
Extension and Enhancement of Increased Estate And Gift Tax Exemption Amounts	40
Lifetime Estate & Gift Tax Exemption Increased	40
Extension of Increased AMT Exemption Amounts and Modification Of Phaseout Thresholds.	40
Extension and Modification of Qualified Residence Interest Limitation Deduction	41
OBBBA Makes Mortgage Insurance Premiums Deductible for Itemizers	41
Casualty Loss Deduction Limitation Extension and Modification	41
OBBBA Makes Provisions Permanent & Eliminates Need to Itemize	42
Termination of Miscellaneous Itemized Deductions Other Than Educator Expenses	42
OBBBA Permanently Eliminates Miscellaneous Deductions Subject to 2% for Other than Educator Costs	42
Limitation on Tax Benefit of Itemized Deductions	42
OBBBA Imposes Reduction on Itemized Deductions	43
Extension and Modification of Qualified Transportation Fringe Benefits	43
OBBBA Eliminates Most Excludable Transportation Fringe Benefits for Employees	43
Extension and Modification of Moving Expenses Treatment	43
OBBBA Permanently Eliminates Most Moving Expense Treatment, adds Intelligence Community Exception	44
Extension and Modification of Limitation on Wagering Losses	44
OBBBA Reduces Wagering Loss Deduction & Includes Travel & Lodging in Losses	44
ABLE Account Extension and Enhancement of Increased Contribution Limitation	44
OBBBA Increases ABLE Contribution Limit	45
Extension and Enhancement of Savers Credit Allowed For Able Contributions	45
OBBBA Repeals Savers Match & Increases Contribution Considered for Credit	46
Extension of Rollovers from Qualified Tuition Programs to Able Accounts	46
OBBBA Makes Rollovers to ABLE Accounts Permanent	46
OBBBA Permanently Extends Treatment of Imminent Danger Pay	47
Extension and Modification of Exclusion from Gross Income of Student Loans Discharged on Account of Death or Disability	47
OBBBA Makes Tax-Free Student Loan Discharges due to Death or Disability Permanent	47
Trump Accounts and Contribution Pilot Program	47
Enhancement of Child and Dependent Care Tax Credit	48
OBBBA Increases Child and Dependent Care Credit & Income Limit	49
Enhancement of the Dependent Care Assistance Program	49
OBBBA Increases Dependent Care Assistance Program FSA Contribution Limit	49
Tax Credit for Contributions of Individuals to Scholarship Granting Organizations	49
Exclusion for Employer Payments of Student Loans	50
OBBBA Makes Employer's Student Loan Payment Exclusion Permanent	50
Additional Qualified Higher Education Expenses for §529 Accounts	50
OBBBA Increases 529 Distribution Limit & Expands Education Expense Definition	51
Charitable Deduction for Non-itemizers Authorized	52
OBBBA Authorizes Partial Charitable Deduction for Non-Itemizers	52
0.5 Percent Floor on Deduction of Contributions	52
OBBBA Makes Cash Contribution Limit Permanent & Adds Deductible Floor	52
Excise Tax on Certain Remittance Transfers	53
OBBBA Imposes 1% Remittance Transfer Tax	53
Termination of Energy Efficient Home Improvement Credit	53
OBBBA Terminates Energy Efficient Home Improvement Credit 7 Years Early	54
Termination of Residential Clean Energy Credit	54
OBBBA Terminates Residential Clean Energy Credit 9 Years Early	54
Social Security Number Requirement for American Opportunity and Lifetime Learning Credits	55
OBBBA Narrows Needed AOTC & Lifetime Learning Credit Identification Documentation	55
Summary	55
Chapter 4 Review	56

Chapter 5 – Business Taxpayers 2026 & Later Effective Date57

Introduction	57
Chapter Learning Objectives	57
Credit for Foreign Taxes Paid Modified	57
OBBBA Increases Foreign Taxes Paid Credit	57
Extension And Enhancement Of Deduction For Qualified Business Income	58
OBBBA Makes QBI Deduction Permanent, Extends Phase-In & Establishes New Deduction	58
New Minimum Deduction	59
Extension and Enhancement of Paid Family and Medical Leave Credit	59
OBBBA Makes PFML Credit Permanent, adds Insurance Premium Credit & Reduces Tenure Requirement	59
Exceptions from Limitations on Deduction for Business Meals	59
OBBBA Increases Meal Deduction for Restaurants, Caterers, Fishing Boats & Processers	60
Enhancement of Advanced Manufacturing Investment Credit	60
OBBBA Increases Advanced Manufacturing Investment Credit	60
Sourcing Certain Income from the Sale of Inventory Produced in the United States	60
OBBBA Allows 50 Percent of U.S. Produced Inventory to be Considered Foreign-Sourced	60
Modifications Related to Foreign Tax Credit Limitation	61
OBBBA Changes Foreign Tax Credit Limitations	61
Modification of Deduction for Foreign-Derived Deduction Eligible Income and Net CFC Tested Income	61
OBBBA Foreign-Derived Deduction Eligible Income and Net CFC Tested Income	61
Rules Related to Deemed Intangible Income	62
OBBBA Repeals Tax-Free Deemed Return on Foreign Investments	62
Extension and Modification of Base Erosion Minimum Tax Amount	62
OBBBA Increases the BEAT Rate to 10.5%	62
Coordination of Business Interest Limitation with Interest Capitalization Provisions	62
OBBBA Requires Application of Business Interest Limitation Before Interest Capitalization	62
Definition of Adjusted Taxable Income for Business Interest Limitation	63
OBBBA Amends ATI Definition Increasing Business Interest Expense Deduction	63
Permanent Extension of Look-Thru Rule for Related Controlled Foreign Corporations	63
OBBBA Extends CFC Look-Thru Rule	63
Enhancement of Employer-Provided Child Care Credit	63
OBBBA Increases Child Care Credit Amount and Percentage of Expenditures	64
Enhancement of the Dependent Care Assistance Program	64
OBBBA Increases Dependent Care Assistance	64
Modification of Tax on Investment Income of Private Colleges & Universities	64
OBBBA Imposes Higher Taxes on Some Private Colleges & Universities	64
Expanding application of tax on excess compensation within tax-exempt organizations	65
OBBBA Changes "Covered Employee" Definition Potentially Increasing Excise Tax	65
Permanent Renewal and Enhancement of Opportunity Zones	65
OBBBA Makes Opportunity Zones Program Permanent & Imposes Stricter Guidelines	66
Permanent Enhancement of Low-Income Housing Tax Credit	67
OBBBA Increases Low-Income Housing Tax Credits & Permits 100% Expensing	67
Permanent Extension of New Markets Tax Credit	68
OBBBA Permanently Extends New Markets Tax Credit	68
1-Percent Floor on Deduction of Charitable Contributions made by Corporations	68
OBBBA Limits Corporate Charitable Deduction to Contributions over 1% of Taxable Income	68
Permanent Increase in Limitation on Cover Over of Tax on Distilled Spirits	69
OBBBA Increases Cover Over Payments to Puerto Rico & U.S. Virgin Islands	69
Adjustment of Charitable Deduction for Certain Expenses Incurred in Support of Native Alaskan Subsistence Whaling	69
OBBBA Increases Limit for Charitable Deduction for Whaling Captain Expenses	69
Increase in Threshold for Requiring Information Reporting with Respect to Certain Payees	69
OBBBA Raises Reporting Independent Contractor Threshold to $2,000	69
Reduction of Transfer and Manufacturing Taxes for Certain Devices	69
OBBBA Eliminates Transfer & Manufacturing Tax on Specified Firearms	69
Restoration of Taxable REIT Subsidiary Asset Test	70
OBBBA Increases REIT's Asset Limit Held in Taxable REIT Subsidiary	70
Modifications to De Minimis Entry Privilege for Commercial Shipments	70
OBBBA & Executive Order Eliminate De Minimis Entry Privilege, Impose Violation Penalty	70
Modification and Extension of Limitation on Excess Business Losses of Noncorporate Taxpayers	70
OBBBA Reduces EBL Limitation & Makes Rule Permanent	70
Excessive Employee Remuneration from Controlled Group Members and Allocation of Deduction	71
OBBBA Broadens Controlled Group Definition & Aggregates Compensation for Deduction Limit	71
Extension and Modification of Qualified Transportation Fringe Benefits	72
OBBBA Eliminates Deductibility of Most Transportation Fringe Benefits	72
Summary	72
Chapter 5 Review	73

Answers to Review Questions75

Chapter 1	75
Chapter 2	76
Chapter 3	77
Chapter 4	79
Chapter 5	80

Glossary82

Index86

Course Details

Author: Paul J. Winn CLU ChFC

Paul J. Winn CLU ChFC — Financial Writer, Editor & Trainer. Education: B.A., St. John’s University (1961–1964); Law School, University of Virginia (1964–1965); MBA program Binghamton University (1986–1989); CLU (1985); ChFC (1987). Experience: Thirty years in the life insurance and investment industry (1965–1995). Thirty-one years as a financial writer, editor and trainer (1995–2026). Paul held positions at Mutual Life Insurance Company of New York as product developer and compensation officer; at Security Mutual Life Insurance Company as general agent, marketing vice president, and agency vice president; at Principal Financial Group as agency manager; and as president of Maryland Financial Corporation, managing a financial adviser corporation providing tax, investment and financial planning. As a writer and editor, Paul is a published book author whose books include Tax Planning from the Heart, Business Succession Planning, and Dominating Obamacare. He served as writer and editor of a major mutual life insurance company’s agent training university, created more than 200 insurance, securities and tax training courses in online, print and scripted classroom formats, and is the founder and CEO of Winn Publications LLC, a tax and insurance continuing education course licensor.

Publication/Revision Date: 1/16/2026

Course Exam Questions (online): 30 (multiple-choice)

Program Delivery Method: Self-Study (NASBA QAS Self-Study)

Available Formats of Course Text: Downloadable PDF, Printed/Mailed

Course Level, Prerequisites, and Advance Preparation Requirements

License	Course Level	Prerequisites	Advance Preparation Requirements
CPA	Overview	None	None
EA/OTRP	Overview	None	None

* This program is appropriate for professionals at all organizational levels.

Sponsor ID Numbers

National Registry of CPE Sponsors I.D.: 107615

IRS Qualified Sponsor I.D.: FWKKO — Course I.D.: FWKK0-T-00732-26-S

State CPA Board Sponsor ID Numbers (where applicable)

Florida Division of Certified Public Accounting: 0004761

Hawaii Board of Public Accountancy: 14003

New York State Board for Public Accountancy: 002146

Ohio Accountancy Board: CPE .51 PSR

Pennsylvania State Board of Accountancy: PX178025

Texas State Board of Public Accountancy: 009349

Learning Objectives

As a result of studying the course material, you should be able to meet the objectives listed below:

Recognize the new standard deduction amounts;
Describe the new senior, overtime and tip deductions;
Explain the enhancements made to the –
- Child Tax Credit,
- Adoption Tax Credit,
- Child and Dependent Care Tax Credit,
- Paid Family and Medical Leave Tax Credit, and
- Low-Income Housing Tax Credit;
Apply the changes made to third-party network transaction reporting;
Explain the changes made to the business interest deduction limitation;
Identify the various energy-related tax credits that have been terminated or modified;
Apply the new casualty loss deduction limitations;
Describe the Achieving a Better Life Experience (ABLE) account modifications; and
Recognize the permanent enhancement of low-income housing tax credit.