One Big Beautiful Bill Act
Plain-language summary
The One Big Beautiful Bill Act (H.R. 1) is a comprehensive budget reconciliation law that makes permanent the individual and business tax structures originally established by the 2017 Tax Cuts and Jobs Act. It introduces new tax-free treatment for tipped wages and overtime pay for eligible workers through 2028. The legislation also establishes 'Trump accounts' for children born between 2025 and 2028, providing a one-time $1,000 federal deposit. Additionally, it modifies energy tax credits to prioritize North American feedstock and implements new budget neutrality requirements for state Medicaid programs.
Potential impact: This law primarily benefits individual taxpayers and families by locking in lower tax rates and higher standard deductions while providing targeted relief to tipped and hourly workers. It also impacts the business sector by making investment incentives permanent and tightening domestic sourcing requirements for energy production credits.
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Bill Highlights
- Permanently extends the individual income tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
- Increases the permanent base standard deduction to $15,750 for single filers and $31,500 for married couples filing jointly.
- Authorizes a one-time $1,000 federal government deposit into 'Trump accounts' for individuals born between December 31, 2024, and January 1, 2029.
- Establishes a tax deduction for qualified overtime pay of up to $12,500 for single filers and $25,000 for joint filers through 2028.
- Permanently extends 100% bonus depreciation for business property acquired and placed into service on or after January 19, 2025.
- Extends the clean fuel production tax credit through 2029, requiring that feedstock be sourced from the United States, Canada, or Mexico.
- Amends Section 1115 of the Social Security Act to require budget neutrality for all Medicaid demonstration projects.
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Read the official bill text
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Positions on this bill
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H.R. 1: An act to provide for reconciliation pursuant to title II of H. Con. Res. 14.








































































































































































































































































































































































































































