The One, Big, Beautiful Bill Act (OBBBA)—President Donald Trump’s sweeping tax and spending reform—is set to be signed into law on 4 July, America’s Independence Day, marking a symbolic and strategic victory for his administration. Passed by the Senate in a narrow 51–50 vote, with Vice President JD Vance casting the tie-breaker, and approved by the House 218–214 after intense negotiations, the Bill permanently extends key provisions of the 2017 Tax Cuts and Jobs Act, introduces major tax breaks for individuals and businesses —ushering in a new era of fiscal policy and planning.

Key highlights of the Bill

  • The TCJA tax rates are made permanent, with the top rate lowered to 37% and adjusted thresholds providing greater relief for middle-income households.

  • The SALT deduction cap increases from USD 10,000 to USD 40,000, based on filing status and MAGI, gradually from 2025 to 2029, then resets to USD 10,000 in 2030.

  • Beginning in 2026, the estate and gift tax exemption will permanently increase to USD 15 million and will be adjusted annually for inflation, using 2025 as the base year.

  • There is no tax on tips or overtime payments to employees, except that highly compensated employees or those with earned income exceeding the threshold are taxable.

  • The Trump Account, earlier called Money Accounts for Growth and Advancement (MAGA) accounts, is a federal savings program supporting education, entrepreneurship, and homeownership, with a USD 1,000 contribution for each eligible child born between 2024 and 2028.
  • Starting 1 January 2025, taxpayers can fully deduct domestic R&E expenditures in the year incurred and may either deduct or amortise over two years any remaining unamortised expenses capitalised from 2022 to 2024.

  • Effective 1 January 2026, the BEAT rate increases to 10.5%, while FDII and GILTI deduction rates are permanently reduced to 33.34% and 40% respectively, overriding the TCJA’s scheduled changes.

  • For payments made on or after 1 January 2026, the Form 1099 reporting threshold increases from $600 to $2,000, with future adjustments indexed for inflation.

  • Effective 1 January 2026, the excise tax on outbound remittance transfers drops from 5% to 1%, applying only to cash-based methods, while transfers via U.S. banks or cards remain exempt under anti-money laundering compliance.

  • The proposed “Revenge Tax” was withdrawn due to international opposition. It was originally aimed at countering unfair foreign tax practices, there are possibilities of future developments in this area.

Our comments

With The One, Big, Beautiful Bill Act now passed, the remittance tax for NRIs has been reduced to 1% and narrowed to apply only to cash-based transfers from January 2026. Transfers via US bank accounts or debit/credit cards are exempt—bringing long-awaited clarity and relief to the NRI community.

Additionally, the Bill permanently extends key provisions of the 2017 Tax Cuts and Jobs Act, signaling a broader shift in fiscal policy that favors both individual and business taxpayers. Permanent extension of 2017 tax cuts, higher SALT deduction caps, and enhanced child tax credits for individuals; full deductions for domestic R&D and expanded depreciation benefits for businesses; and increased QSBS gain exclusions for small businesses. Overall, OBBBA has something or the other for everyone in it.

Decoded: Key highlights of The One, Big, Beautiful Bill

Decoded: Key highlights of The One, Big, Beautiful Bill

The Bill introduces major tax breaks for individuals and businesses — ushering in a new era of fiscal policy and planning.

    Our leaders

    Lloyd Pinto
    Lloyd Pinto
    Partner, Tax
    Mumbai
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    Nikita Gulati
    Nikita Gulati
    Partner, Tax
    Gurugram
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      Chitranshi Gupta, Director, Tax, Grant Thornton Bharat, has also contributed to this tax alert.