Overview

• The IRS and Treasury are finalizing detailed regulations for OBBBA’s expanded deductions and credits before 2025 tax filings begin.
• Law firms and tax practitioners have issued comprehensive breakdowns of the act’s individual, business, QSBS, SALT and clean-energy provisions.
• Certain itemized deductions, including unreimbursed employee expenses and tax preparation fees, are permanently suspended, reshaping individual tax planning.
• New investment incentives encompass permanent 100% bonus depreciation, a $2.5 million Section 179 expensing limit, an enhanced QSBS exclusion and a rolling ten-year Opportunity Zones framework.
• The state and local tax deduction cap will rise to $40,000 through 2029 with income-based phase-outs before reverting to $10,000 in 2030, requiring strategic timing for high-earners.