A Shifting Tax Landscape

The One Big Beautiful Bill Act (OBBBA) represents one of the most consequential updates to the U.S. tax code in recent memory—defined by expirations, phase-outs, and temporary provisions that will shape financial and tax planning for years to come.

In a recent webinar, Debbie Taylor broke down the implications of the OBBBA, highlighting both its opportunities and challenges.

A New Era of Constant Change

For decades, tax reform came slowly—major updates under Reagan (1984), Clinton, and Bush, followed by the 2017 Tax Cuts and Jobs Act (TCJA). But since then, change has accelerated.

With the TCJA, SECURE Act, SECURE 2.0, and now the OBBBA, the tax code is evolving at a pace never seen before.

“Investors are sitting on large investment and real estate portfolios,” Taylor noted. “They’re retiring, the stakes are high, and they want guidance.”

While the OBBBA fulfills many campaign promises from the Trump administration, most of its provisions are temporary, constrained by budget rules like the Senate’s Byrd Rule.

That means investors must now plan for a landscape where the rules can—and likely will—change again in just a few years.

Multi-Year Planning Is the New Standard

Gone are the days when year-end tax moves could stand alone. Under the OBBBA, investors need a multi-year strategy to stay ahead.

“We’ve always done some multi-year projections,” Taylor explained. “But now, it’s essential.”

Because many provisions expire between 2025 and 2029, the timing of actions like income acceleration, deduction management, or Roth conversions can dramatically affect your lifetime tax outcome.

At Insight Financial Strategists, we focus on minimizing lifetime taxes—not just this year’s refund. Under the OBBBA, that long-term perspective is no longer optional; it’s crucial.

The Myth of Permanence

The OBBBA’s so-called “permanent” provisions are anything but. With most tax laws now passed through reconciliation, any change in congressional control could rewrite the rules again.

In today’s environment, no tax provision should be assumed permanent. Flexibility and foresight are essential.

Key Temporary Provisions and Expiration Dates

The OBBBA’s temporary measures touch nearly every corner of the tax code—from clean energy credits to retirement and wage-related deductions.

Here are several of the most impactful highlights from Taylor’s breakdown:

1. Clean Energy Credits

• Clean Vehicle Credit: Expires September 30, 2025
• Residential Clean Energy Credit (solar, geothermal, biomass): Ends December 31, 2025
• Energy-Efficient Home Improvement Credit: Ends December 31, 2025
• Alternative Fuel Refueling Property Credit (EV chargers): Ends June 30, 2026

Taylor noted that the staggered expiration dates are likely due to revenue offset considerations.

2. Car Loan Interest Deduction

• Deduction up to $10,000 with phase-outs between $200,000–$250,000 AGI
• Primarily relevant for luxury vehicles (~$125,000+)
• Expires December 31, 2028

3. Overtime and Tip Income Deductions

• Overtime deduction applies only to the half-time premium portion of overtime pay
• Tips exclusion: Up to $25,000 per person, regardless of filing status
• Both expire December 31, 2028

Certain service professions are excluded—consult your tax professional before assuming eligibility.

4. Enhanced Senior Deduction

• Replaces the “no tax on Social Security” campaign promise
• Adds $6,000 per person aged 65 and older
• Creates a $42,700 standard deduction for married seniors
• Expires December 31, 2028

This provision may unlock new tax-efficient withdrawal opportunities for retirees. Some couples earning up to $150,000 could qualify for the 0% capital gains bracket, a potential advantage for those holding concentrated stock positions.

5. Enhanced SALT Deduction

• Increased deduction with a phase-out for AGI between $500,000 and $600,000
• Expires December 31, 2029

Marriage penalty alert: Two individuals may each qualify for a $40,000 deduction separately but only $10,000 combined if married.

This steep phase-out could produce effective marginal tax rates of 45–50%, especially for those also claiming Qualified Business Income (QBI) deductions. Coordination with a financial or tax advisor is critical.

The Bottom Line

The One Big Beautiful Bill Act spans nearly 870 pages, and the IRS will release more clarifications in the months ahead.

Even seemingly small financial decisions—like withdrawing $30,000 for a home project or trip—could unexpectedly push a taxpayer into a phase-out range, costing thousands in lost deductions.

The OBBBA is complex, but it’s also manageable with the right planning. It rewards those who plan ahead and penalizes those who don’t.

Key Takeaways

• Build a multi-year, lifetime tax strategy to reduce future liabilities.
• Track expiration dates and phase-outs carefully.
• Coordinate income, deductions, and investment timing under the new framework.

At Insight Financial Strategists, we’re closely monitoring the OBBBA’s evolving guidance to help clients stay proactive—not reactive—in their tax planning.

If you’d like to explore how these provisions may affect your plan, contact us to schedule a review before year-end.

This article is for informational purposes only and does not constitute tax or investment advice. Please consult your tax professional or financial planner before making decisions based on these provisions.