Love it or loathe it, the “One, Big, Beautiful Bill” (OBBB) has arrived. Tax professionals everywhere are assessing its implications for clients, including new thresholds, deadlines, and the best ways to educate clients.
This landmark legislation makes many Tax Cuts and Jobs Act (TCJA) provisions permanent while introducing significant new deductions and credits. For tax advisors, the stakes are extraordinarily high. The OBBB touches on nearly every aspect of tax law, from individual planning to business structures and international tax law.
This article examines the critical individual and business tax changes, emerging compliance challenges, effective client communication strategies, and professional development resources needed to navigate the OBBB era successfully.
Table of Contents
- Critical individual tax provisions tax advisors need to know
- Business taxation changes reshaping advisory services
- New compliance challenges and planning opportunities
- Client communication and education strategies
- Professional development and resource utilization
- Positioning your practice for success in the OBBB era
Critical individual tax provisions tax advisors need to know
At its core, the OBBB brings stability to individual tax rates. The permanent extension of the seven-tier tax bracket system (10%, 12%, 22%, 24%, 32%, 35%, 37%), complete with built-in inflation adjustments, gives tax advisors a solid foundation for long-term planning. No more hedging advice with sunset provision caveats.
For clients in high-tax states, the expanded SALT (State and Local Tax) cap creates opportunity. The increase to $40,000 (for joint filers or $20,000 for single filers) through 2029 means new opportunities for tax efficiency, at least for clients earning under $500,000. Of special note, the cap increases by 1% annually—a detail that advisors should factor into multi-year projections.
And the OBBB’s introduction of ‘Trump Accounts’ expands opportunities for planning—a valuable insight for soon-to-be new parents. Qualifying children born 2025–2028 will receive an account seeded with $1,000 at birth that can receive annual tax contributions and grow tax-deferred.
The bill also revives the above-the-line charitable deduction for non-itemizers—up to $600 for joint filers. A new 0.5% AGI floor now applies, so only donations exceeding that threshold count. To qualify, a household earning $100,000+ must donate more than $500 to claim any deduction. This limits casual or one-off giving from qualifying and encourages more deliberate, charitable planning.
Trump Accounts have universal eligibility, so qualifying children of all household income levels will receive the $1,000 initial deposit. Meanwhile, income-based ‘no tax on tips’ and ‘no tax on overtime’ deductions (up to $25,000 and $12,500, respectively) apply only for taxpayers with AGI (Adjusted Gross Income) up to $150K (single) or $300K (joint). These deductions are set to expire in 2028, and forward-thinking advisors are already identifying eligible clients and building sunset-aware plans.
The bill’s most dramatic element for high-net-worth clients, perhaps, is its increase in the estate tax exemption to $15 million. With inflation adjustments built in, this completely transforms estate planning. Every wealthy client’s estate plan should be revisited to maximize this generous new threshold.
Business taxation changes reshaping advisory services
The permanent expensing provisions for short-lived assets and domestic R&D (U.S.-based research expenses that now qualify for immediate tax write-offs) represent a fundamental shift in business tax planning. With permanent expensing now certain, more aggressive investment strategies become possible.
Pass-through businesses receive a significant boost with the permanent extension of the 20% income deduction. This seemingly straightforward change requires tax advisors to conduct comprehensive reviews of client entity structures. In many cases, the permanence of this provision might justify entity restructuring that previously did not make economic sense.
For international taxation, the “One, Big, Beautiful Bill” (OBBB) creates a more business-friendly environment. While rates have increased in some areas, the reduction in double taxation opens favorable, new planning opportunities. Tax advisors with multinational clients face the challenging task of rebalancing international structures to optimize these new provisions.
Despite being cut roughly in half, the OBBB’s green energy tax credits still remain significant planning considerations. For example, battery storage developers can now pair 100% bonus depreciation with scaled-back investment tax credits (ITCs), enabling immediate write-offs that still significantly lower project costs.
Projects relying on solar or EV infrastructure must begin construction by the end of 2027 to qualify, and new foreign ownership restrictions make eligibility audits essential. Even at reduced levels, “green” credits offer meaningful value—but only with tight planning and coordination.
The complexity extends beyond the credits themselves to their interactions with other business tax provisions.
New compliance challenges and planning opportunities
The new deductions for charitable deductions, tips, overtime, and car loan interest bring a maze of compliance requirements. Tax advisors are entering somewhat uncharted territory, and these provisions will likely require extensive IRS guidance. Smart practitioners are not waiting for government rulebooks; they are already developing robust documentation systems in anticipation of increased scrutiny.
A bright spot emerges in the expansion of 529 plan qualified expenses. The inclusion of more K-12, homeschool, and postsecondary credentialing costs creates new planning opportunities.
Tax advisors should proactively identify clients who can benefit from these expanded definitions and incorporate them into comprehensive educational funding strategies.
For clients aged 65 and older, the new $6,000 bonus deduction through 2028 demands immediate attention. This targeted benefit requires tax advisors to develop specialized planning approaches for senior clients, with the 2028 end date adding urgency to implementation strategies.
Client communication and education strategies
The complexity of the “One, Big, Beautiful Bill” (OBBB) requires a deliberate yet delicate approach. No one wants to play fearmonger, or to overwhelm clients with technical details that leave them confused and indifferent.
Successful financial experts and tax advisors are developing clear, targeted explanations of how specific provisions impact individual situations. The key is to boil down complex legislation into actionable insights.
See our advisory services for developing effective segmentation strategies. While it’s likely not possible to customize 1:1 messaging for each client with accurate figure forecasts, you can group clients into distinct categories to make your messaging more relevant and focused.
Common groupings for more focused communications include:
- Business owners
- High-income households
- High-income households in high-tax states
- Retired seniors
- Families with young children
- Families with (near) college-age children
This approach allows you to deliver more relevant and actionable information about the OBBB provisions that matter most to each group. Positive, proactive outreach is crucial to help clients make the most of the OBBB. Many planners and tax advisors are already creating newsletters, targeted webinars, and educational guides to explain the bill’s benefits.
And it’s not too soon to schedule comprehensive client reviews. Many practitioners are already scheduling meetings to discuss and implement OBBB-optimized planning strategies.
Professional development and resource utilization
The breadth and complexity of the “One, Big, Beautiful Bill” (OBBB) demand serious commitment to continuing education. Tax advisors who invest in specialized training gain greater confidence and expertise, offering a distinct competitive advantage as these provisions take effect.
Beyond initial client outreach, creating internal reference materials organized by client type, income level, and life stage can streamline advisory workflows. The most effective systems combine technical accuracy with practical application guidelines, helping ensure consistently useful and accessible advice.
Positioning your practice for success in the OBBB era
The true measure of success under the “One, Big, Beautiful, Bill” (OBBB) will not be found in technical mastery alone. The firms that thrive will be those that translate complex provisions into clear ideas and strong results.
In this new era of tax and wealth management, the OBBB presents a unique opportunity to demonstrate your expertise (of legislation and their life situation) and deepen client relationships. Tax advisors who embrace this perspective, investing in both technical knowledge and client service capabilities, position themselves for sustained success.
Your clients don’t just need answers—they need clarity, confidence, and results. The “One Big Beautiful Bill” is your moment to lead with impact. Harness equips forward-thinking advisors with the tools and support to elevate client service, streamline operations, and turn complexity into opportunity. Power your practice with Harness—where tech meets trusted expertise.
Disclaimer
Tax related products and services provided through Harness Tax LLC. Harness Tax LLC is affiliated with Harness Wealth Advisers LLC, collectively referred to as “Harness Wealth”. Harness Wealth Advisers LLC is a paid promoter, internet registered investment adviser. Registration does not imply a certain level of skill or training. This article should not be considered tax or legal advice and is provided for informational purposes only. Please consult a tax and/or legal professional for advice specific to your individual circumstances. This article is a product of Harness Tax LLC.
Content was prepared by a third-party provider and not the adviser. Content should not be regarded as a complete analysis of the subjects discussed. Although we believe the content is reliable, it is not guaranteed as to accuracy and does not purport to be complete nor is it intended to be the primary basis for financial or tax decisions.