Summary of the One Big Beautiful Bill Act (Course Id 2919)

NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 2919

Part 1 – Overview of the One Big Beautiful Bill Act

Course Learning Objectives

Introduction

Title VII – FINANCE

SUBTITLE A: Tax

Chapter 1 – Providing Permanent Tax Relief for Middle-Class Families and Workers

Sec. 70101 – Extension of Modification of Rates

Sec. 70102 – Extension and Enhancement of Increased Standard Deduction

Sec. 70103 – Termination of Deduction for Personal Exemptions Other Than Temporary Senior Deduction

Sec. 70104 – Extension and Enhancement of Increased Child Tax Credit

Sec. 70105 – Extension and Enhancement of Qualified Business Income

Sec. 70106 – Extension and Enhancement of Increased Estate and Gift Tax Exemption Amounts

Sec. 70107 – Extension of Increased Alternative Minimum Tax Exemption Amounts and Modification of Phase-out Thresholds

Sec. 70108 – Extension and Modification of Limitation on Deduction for Qualified Residence Interest

Sec. 70109 – Extension and Modification of Limitation on Casualty Loss Deduction

Sec. 70110 – Termination of Miscellaneous Itemized Deductions Other Than Educator Expenses

Sec. 70111 – Limitation on Tax Benefit of Itemized Deductions

Sec. 70112 – Extension and Modification of Qualified Transportation Fringe Benefits

Sec. 70113 – Extension and Modification of Limitation on Deduction and Exclusion for Moving Expenses

Sec. 70114 – Extension and Modification of Limitation on Wagering Losses

Sec. 70115 – Extension and Modification of Increased Limitation on Contributions to ABLE Accounts

Sec. 70116 – Extension and Enhancement of Savers Credit Allowed for ABLE Contributions

Sec. 70117 – Extension of Rollovers from Qualified Tuition Programs to ABLE Accounts Permitted

Sec. 70118 – Extension of Treatment of Certain Individuals Performing Services in the Sinai Peninsula and Enhancement to Include Additional Areas

Sec. 70119 – Extension and Modification of Exclusion from Gross Income of Student Loans Discharged on Account of Death or Disability

Sec. 70120 – Limitation on Individual Deductions for Certain State and Local Taxes, Etc.

Chapter 1 Review Questions

Chapter 1 Review Question Answers

Chapter 2 – Delivering on Presidential Priorities to Provide New Middle-Class Tax Relief

Sec. 70201 – No Tax on Tips

Sec. 70202 – No Tax on Overtime

Sec. 70203 – No Tax on Car Loan Interest

Sec. 70204 – Trump Accounts and Contribution Pilot Program

Chapter 2 Review Questions

Chapter 2 Review Question Answers

Chapter 3 – Establishing Certainty and Competitiveness for American Job Creators

Subchapter A – Permanent U.S. Business Tax Reform and Boosting Domestic Investment

Sec. 70301 – Full expensing for Certain Business Property

Sec. 70302 – Full Expensing of Domestic Research and Experimental Procedures

Sec. 70303 – Modification of Limitation on Business Interest

Sec. 70304 – Extension and Enhancement of Paid Family and Medical Leave Credit

Sec. 70305 – Exceptions from Limitations on Deductions for Business Meals

Sec. 70306 – Increased Dollar Limitations for Expensing of Certain Depreciable Business Assets

Sec. 70307 – Special Depreciation Allowance for Qualified Production Property

Sec. 70308 – Enhancement of Advanced Manufacturing Investment Credit

Sec. 70309 – Spaceports are Treated Like Airports Under Exempt Facility Bond Rules

Subtitle B – Permanent America-first International Tax Reforms

Part I – Foreign Tax Credit

Sec. 70311 – Modifications Related to Foreign Tax Credit Limitation

Sec. 70312 – Modifications to Determination of Deemed Paid Credit for Taxes Properly Attributed to Tested Income

Sec. 70313 – Sourcing Certain Income from the Sale of Inventory Produced in the United States

Part II – Foreign-Derived Deduction Eligible Income and Net CFC Tested Income

Sec. 70321 – Modification of Deduction for Foreign-Derived Deduction Eligible Income and Net CFC Tested Income

Sec. 70322 – Determination of Deduction Eligible Income

Sec. 70323 – Rules Related to Deemed Intangible Income

Part III – Base Erosion Minimum Tax

Sec. 70331 – Extension and Modification of Base Erosion Minimum Tax Amount

Part IV – Business Interest Limitation

Sec. 70341 – Coordination of Business Interest Limitation with Interest Capitalization Provisions

Sec. 70342 – Definition of Adjusted Taxable Income for Business Interest Limitation

Part V – Other International Tax Reforms

Sec. 70351 – Permanent Extension of Look-Thru Rule for Related Controlled Foreign Corporations

Sec. 70352 – Repeal of Election for 1-Month Deferral in Determination of Taxable Year of Specified Foreign Corporations

Sec. 70353 – Restoration of Limitation on Downward Attribution of Stock Ownership in Applying Constructive Ownership Rules.

Sec. 70354 – Modifications to Pro Rata Share Rules

Chapter 3 Review Questions

Chapter 3 Review Question Answers

Chapter 4 – Investing in American Families, Communities, and Small Businesses

Subchapter A – Permanent Investments in Families and Children

Sec. 70401 – Enhancement of Employer-Provided Child Care Credit

Sec. 70402 – Enhancement of Adoption Credit

Sec. 70403 – Recognizing Indian Tribal Governments for Purposes of Determining Whether a Child Has Special Needs for Purposes of the Adoption Credit

Sec. 70404 – Enhancement of the Dependent Care Assistance Program

Sec. 70405 – Enhancement of Child and Dependent Care Tax Credit

Subchapter B – Permanent Investments in Students and Reforms to Tax-exempt Institutions

Sec. 70411 – Tax Credit for Contributions of Individuals to Scholarship Granting Organizations

Sec. 70412 – Exclusion for Employer Payments of Student Loans

Sec. 70413 – Additional Expenses Treated as Qualified Higher Education Expenses for Purposes of 529 Accounts

Sec. 70414 – Certain Postsecondary Credentialing Expenses Treated as Qualified Higher Education Expenses for Purposes of 529 Accounts

Sec. 70415 – Modification of Excise Tax on Investment Income of Certain Private Colleges and Universities

Sec. 70416 – Expanding Application of Tax on Excess Compensation Within Tax-Exempt Organizations

Subchapter C – Permanent Renewal and Enhancement of Opportunity Zones

Sec. 70421 – Permanent Renewal and Enhancement of Opportunity Zones

Sec. 70422 – Permanent Enhancement of the Low-Income Housing Credit

Sec. 70423 – Permanent Extension of New Markets Tax Credit

Sec. 70424 – Permanent and Expanded Reinstatement of Partial Deduction for Charitable Contributions of Individuals Who do Not Elect to Itemize

Sec. 70425 – 0.5 Percent Floor on Deduction of Contributions Made by Individuals

Sec. 70426 – 1-Percent Floor on Deduction of Charitable Contributions Made by Corporations

Sec. 70427 – Permanent Increase in Limitation on Cover Over of Tax on Distilled Spirits

Sec. 70428 – Nonprofit Community Development Activities in Remote Native Villages

Sec. 70429 – Adjustment of Charitable Deduction for Certain Expenses in Support of Native Alaskan Subsistence Whaling

Sec. 70430 – Exception to Percentage of Completion Method of Accounting for Certain Residential Construction Contracts

Subchapter D – Permanent Investments in Small Business and Rural America

Sec. 70431 – Expansion of Qualified Small Business Stock Gain Exclusion

Sec. 70432 – Repeal of Revision to De Minimis Rules for Third Party Network Transactions

Sec. 70433 – Increase in Threshold for Requiring Information Reporting with Respect to Certain Payees

Sec. 70434 – Treatment of Certain Qualified Sound Recording Productions

Sec. 70435 – Exclusion of Interest on Loans Secured by Rural or Agricultural Real Property

Sec. 70436 – Reduction of Transfer and Manufacturing Taxes for Certain Devices

Sec. 70437 – Treatment of Capital Gains from the Sale of Certain Farmland Property

Sec. 70438 – Extension of Rules for Treatment of Certain Disaster-Related Personal Casualty Losses

Chapter 4 Review Questions

Chapter 4 Review Question Answers

Chapter 5 – Ending Green New Deal Spending, Promoting America-First Energy, and Other Reforms

Subchapter A – Termination of Green New Deal Subsidies

Sec. 70501 – Termination of Previously-Owned Clean Vehicle Credit

Sec. 70502 – Termination of Clean Vehicle Credit

Sec. 70503 – Termination of Qualified Commercial Clean Vehicles Credit

Sec. 70504 – Termination of Alternative Fuel Vehicle Refueling Property Credit

Sec. 70505 – Termination of Energy Efficient Home Improvement Credit

Sec. 70506 – Termination of Residential Clean Energy Credit

Sec. 70507 – Termination of Energy Efficient Commercial Buildings Deduction

Sec. 70508 – Termination of New Energy Efficient Home Credit

Sec. 70509 – Termination of Cost Recovery for Energy Property

Sec. 70510 – Modifications to Zero-Emission Nuclear Power Production Credit

Sec. 70511 – Termination of Clean Hydrogen Production Credit

Sec. 70512 – Termination and Restriction on Clean Energy Production Credit

Sec. 70513 – Termination and Restrictions on Clean Electricity Investment Credit

Sec. 70514 – Phase-Out and Restrictions on Advanced Manufacturing Production Credit

Sec. 70515 – Restriction on the Extension of Advanced Energy Project Credit Program

Subchapter B – Enhancement of America-First Energy Policy

Sec. 70521 – Extension and Modification of the Clean Fuel Production Credit

Sec. 70522 – Restrictions on Carbon Dioxide Sequestration Credit

Sec. 70523 – Intangible Drilling and Development Costs Taken Into Account for Purposes of Computing Adjusted Financial Statement Income

Sec. 70524 – Income from Hydrogen Storage, Carbon Capture, Advanced Nuclear, Hydropower, and Geothermal Energy Added to Qualifying Income of Certain Publicly Traded Partnerships

Sec. 70525 – Allow for Payments to Certain Individuals Who Dye Fuel

Subchapter C – Other Reforms

Sec. 70531 – Modifications to De Minimis Entry Privilege for Commercial Shipments

Chapter 5 Review Questions

Chapter 5 Review Question Answers

Chapter 6 – Enhancing deduction and Income Tax Credit Guardrails, and Other Reforms

Sec. 70601 – Modification and Extension of Limitation on Excess Business Losses of Noncorporate Taxpayers

Sec. 70602 – Treatment of Payments from Partnerships to Partners for Property or Services

Sec. 70603 -Excessive Employee Remuneration from Controlled Group Members and Allocation of Deduction

Sec. 70604 – Excise Tax on Certain Remittance Transfers

Sec. 70605 – Enforcement Provisions with Respect to COVID-Related Employee Retention Credits

Sec. 70606 – Social Security Number Requirement for American Opportunity and Lifetime Learning Credits.

Sec. 70607 – Task Force on the Replacement of Direct File

Chapter 6 Review Questions

Chapter 6 Review Question Answers

Glossary