The One Big, Beautiful Bill- Chapter 4: Investing in Families, Communities, and Businesses & Chapter 5: Ending Green New Deal Spending and other reforms
On July 4th, 2025, The One Big Beautiful Bill (BBB) became law after passing the Senate, the House, and the President. This bill includes a section pertaining to finance and tax (Title VII-Finance).
Our team has reviewed the bill and have drafted these posts to provide you with relevant information and explanations about what this means for you. We will separate chapters from the bill into shorter blog posts for specificity and clarity. Please note that this is not a complete list of changes, just ones we have found to be relevant to our clients.
Chapter 4: Investing in American Families, Communities, and Small Businesses
A new credit called “Qualified Elementary and Secondary Education Scholarships" grants a tax credit to individuals who make qualified cash contributions to scholarship granting organizations. The maximum credit is $1,700. The credit applies to tax years ending after Dec 31, 2026.
The definition of qualified higher education expenses for 529 accounts is expanded to include elementary and secondary schools including public, private, and religious schools. This applies to distributions made after July 4, 2025. The existing $10,000 limit on tuition is increased to $20,000. This applies to tax years beginning after Dec 31, 2025. Postsecondary credentialing expenses are also now included in qualified expenses for 529 distributions. This applies to distributions made after July 4, 2025.
The partial deduction for charitable contributions for individuals who do not itemize is made permanent and expanded. The deduction limit is $1,000 ($2,000 joint). This is applicable to tax years after Dec 31, 2025.
The threshold for miscellaneous information reporting has increased from $600 to $2,000 (total annual amount). This is payments of income like rent, non-employee compensation, etc. This applies to payments made after Dec 31, 2025.
The Taxpayer Certainty and Disaster Tax Relief Act of 2020 is extended to permit victims of covered disasters (wildfires in Los Angeles and Kentucky and various storms) to claim a deductible personal casualty loss without needing to itemize.
Chapter 5: Ending Green New Deal Spending, Promoting America-First Energy, and Other Reforms
The following credits and deductions have been terminated:
Previously-Owned Clean Vehicle Credit
Clean Vehicle Credit
Qualified Commercial Clean Vehicles Credit
Alternative Fuel Vehicle Refueling Property Credit
Energy Efficient Home Improvement Credit
Residential Clean Energy Credit
Energy Efficient Commercial Buildings Deduction
New Energy Efficient Home Credit
Cost Recovery for Energy Property
If you have any questions or would like a deeper explanation of any of the changes described above, please contact info@wbcpafirm.com to schedule an appointment with Cameron. For a complete breakdown of the BBB, see Congress’ official website.
Source Documents used:
HR1-119th Congress- Enrolled Bill
ISCPA’s “One Big Beautiful Bill Act- What is in the New Law?”