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DMJPS e-Blast July 10: Tax Alert

The Big Beautiful Bill Unpacked: Tax Planning, Compliance, and Changes for 2025 and Beyond

On July 4, 2025, the 2025 Tax Act was enacted with the President’s signature. Formerly and commonly referred to as the One Big Beautiful Bill (hereafter, the Act), the Act passed the legislative bodies on a party-line vote of 51-50 in the Senate and 218-214 in the House. Since the Act was signed on July 4, this is the date of enactment for certain effective dates in this Act.

The Act began largely as an extension of the provisions of the Tax Cuts and Jobs Act of 2017 (TCJA), which was the President’s signature tax legislative accomplishment of his first term. However, this Act became much more, including a vehicle to enact several of President Trump’s 2024 campaign promises in terms of new ideas and repealing others.

The legislative process for the Act was somewhat novel. The House passed its reconciliation bill on May 22, 2025, and the Senate passed its version on June 1, 2025. Normally, this results in a reconciliation conference committee tasked with reconciling the two very different measures. However, in this case, perhaps due to the self-imposed July 4 deadline for enactment, the House instead voted to pass the Senate Bill intact, bypassing the conference process, and sending the bill directly to the President for signature.

This also means that, in understanding this Act, the reader does not need to concern themselves with the provisions of the original House legislation or their fate in the legislative process. Focus solely on the Senate bill since those measures were enacted.

There are also state issues in these changes. Many states “piggyback” from federal rules, meaning that you start with federal income or taxable income, and then make the adjustments required by that state. Thus, when the federal government changes any of these calculations, it indirectly changes many states as well. We do not yet know which of these provisions will be accepted by any state.

2025 Tax Act:

Personal Provisions

This overview focuses on the key individual-focused provisions in the 2025 Tax Act that are likely to impact many of our clients. It is intended as a practical summary rather than a detailed breakdown of every tax or non-tax measure. We recommend reviewing our companion summary on key business tax provisions for a broader understanding, as some updates may be relevant to both areas.

Learn How it Affects You

2025 Tax Act:

Business Provisions

This summary highlights the key business provisions in the 2025 Tax Act that are most relevant to our business clients. It is not an exhaustive review of all tax or non-tax changes, but offers a focused look at the updates likely to have the greatest impact. For a more complete picture, we encourage you to explore our companion article on the key personal tax provisions, as some changes may overlap or affect personal and business interests.

See What's Inside the Bill