The OBBBA contains hundreds of provisions—many of them related to taxes. For example, it permanently extends the individual tax rates Trump signed into law in 2017, which were set to expire at the end of 2025. It raises the cap on the state and local tax deduction to $40,000 for taxpayers making less than $500,000, with the cap reverting to $10,000 after five years. OBBB includes several tax deductions for tips, overtime pay, auto loans, and creates Trump Accounts, allowing parents to create tax-deferred accounts for the benefit of their children, all set to expire in 2028. It includes a permanent $200 increase in the child tax credit, a 1% tax on remittances, and a tax hike on investment income from college endowments. However, It phases out some clean energy tax credits that were included in the Biden-era Inflation Reduction Act, and promotes fossil fuels over renewable energy. It increases a tax credit for advanced semiconductor manufacturing and repeals a tax on silencers
It raises the debt ceiling by $5 trillion. It cuts Medicaid spending by 12% and expands work requirements for SNAP (food stamp) benefits) recipients and makes states responsible for some of the SNAP costs. OBBB includes $150 billion in new defense spending and another $150 billion for border enforcement and deportations. The law increases Immigration and Customs Enforcement (ICE) funding from $10 billion to more than $100 billion by 2029.
WHY SHOULD YOU ATTEND?
Introduced into the House in May 2025 and signed into law by President Trump on July 4, 2025, the One Big Beautiful Bill Act (OBBB Act), its several hundred pages are likely to affect how lenders extend credit to borrowers and how borrowers are likely to use the proceeds. This session will identify key elements of OBBB for lenders and borrowers, offer pros and cons of these elements, and evaluate any other issues that may arise as OBBB’s provisions are implemented.
AREA COVERED
Description of OBBB Act
• Legislative process from introduction to enactment to implementation
• Contents of OBBB Act—explanation, likely impact
o Individual income taxes
- Tax deduction for qualified overtime income
- Tax deduction for qualified tip income
- Tax deductible for loan interest for U.S.-assembled cars
- Increased limit for tax deductions for state and local taxes
- Tax credit for seniors
- Child tax credit
- Charitable contributions tax deduction
o Business Income Taxes
- Tax deduction for executive compensation
- Depreciation tax deduction
- Domestic research and experimentation tax deduction
- Business interest tax deduction
- Tax deduction for pass-through entities
- Tax credit for semiconductor manufacturing
- Tax credits for affordable housing and poorer neighborhoods
- Deductions for certain workers’ meals
- Metallurgical coal tax credit
- Charitable contributions tax deduction
- Foreign-derived intangible income
- Tax deduction for whaling
o Tax-exempt Organizations
o Educational Institutions
o Medicaid Cuts and Potential Cuts
o Trump accounts and contribution pilot program
o Limits on green industrial policy
o Provisions on agriculture
o Leasing and sale of public lands
o Debt Ceiling
o Medicare Drug Negotiation
o Military Defense
o Border Security
o Supplemental Nutrition Assistance Program (SNAP)
o Student Loans
o Employee Benefits
- Employer-provided childcare credit
- Dependent Care Flexible Spending Accounts
- Paid leave while on Family and Medical Leave Act leave
- Health savings accounts
o Remittance Tax
o Estate tax, gift tax, and generation-skipping transfer tax
o Boost in air traffic control funding
o New $10 billion for NASA
o FCC and NTIA to identify and auction 600 MHz of the electromagnetic spectrum between 1.3 and 10 GHz by 2034
o Repeal of de minimis entry privilege, which allowed shipments under $800 to enter the U.S. tariff-free
o Halving of funding for the Consumer Financial Protection Bureau
• Ramifications
o Disputes on cost of OBBB
o Crowding Out Effect on debt markets
o Changes to political control of Congress and Presidency
LEARNING OBJECTIVES
- Learn the components of the OBBB Act
- Assess the likely consequences of the components on clients and borrowers
- Evaluate the likelihood of the components actually being implemented
- Gain perspective on the costs and benefits of the components
- Review the pros and cons of the Act’s components
WHO WILL BENEFIT?
- Credit Analysts
- Credit Managers
- Loan review officers
- Work-out officers
- Commercial lenders
- Credit Risk Managers
- Chief Credit Officers
- Senior Lenders
- Senior Lending Officer
- Bank Director
- Chief Executive Officer
- President
- Board Chairman
- Finance and accounting personnel
Introduced into the House in May 2025 and signed into law by President Trump on July 4, 2025, the One Big Beautiful Bill Act (OBBB Act), its several hundred pages are likely to affect how lenders extend credit to borrowers and how borrowers are likely to use the proceeds. This session will identify key elements of OBBB for lenders and borrowers, offer pros and cons of these elements, and evaluate any other issues that may arise as OBBB’s provisions are implemented.
Description of OBBB Act
• Legislative process from introduction to enactment to implementation
• Contents of OBBB Act—explanation, likely impact
o Individual income taxes
- Tax deduction for qualified overtime income
- Tax deduction for qualified tip income
- Tax deductible for loan interest for U.S.-assembled cars
- Increased limit for tax deductions for state and local taxes
- Tax credit for seniors
- Child tax credit
- Charitable contributions tax deduction
o Business Income Taxes
- Tax deduction for executive compensation
- Depreciation tax deduction
- Domestic research and experimentation tax deduction
- Business interest tax deduction
- Tax deduction for pass-through entities
- Tax credit for semiconductor manufacturing
- Tax credits for affordable housing and poorer neighborhoods
- Deductions for certain workers’ meals
- Metallurgical coal tax credit
- Charitable contributions tax deduction
- Foreign-derived intangible income
- Tax deduction for whaling
o Tax-exempt Organizations
o Educational Institutions
o Medicaid Cuts and Potential Cuts
o Trump accounts and contribution pilot program
o Limits on green industrial policy
o Provisions on agriculture
o Leasing and sale of public lands
o Debt Ceiling
o Medicare Drug Negotiation
o Military Defense
o Border Security
o Supplemental Nutrition Assistance Program (SNAP)
o Student Loans
o Employee Benefits
- Employer-provided childcare credit
- Dependent Care Flexible Spending Accounts
- Paid leave while on Family and Medical Leave Act leave
- Health savings accounts
o Remittance Tax
o Estate tax, gift tax, and generation-skipping transfer tax
o Boost in air traffic control funding
o New $10 billion for NASA
o FCC and NTIA to identify and auction 600 MHz of the electromagnetic spectrum between 1.3 and 10 GHz by 2034
o Repeal of de minimis entry privilege, which allowed shipments under $800 to enter the U.S. tariff-free
o Halving of funding for the Consumer Financial Protection Bureau
• Ramifications
o Disputes on cost of OBBB
o Crowding Out Effect on debt markets
o Changes to political control of Congress and Presidency
- Learn the components of the OBBB Act
- Assess the likely consequences of the components on clients and borrowers
- Evaluate the likelihood of the components actually being implemented
- Gain perspective on the costs and benefits of the components
- Review the pros and cons of the Act’s components
- Credit Analysts
- Credit Managers
- Loan review officers
- Work-out officers
- Commercial lenders
- Credit Risk Managers
- Chief Credit Officers
- Senior Lenders
- Senior Lending Officer
- Bank Director
- Chief Executive Officer
- President
- Board Chairman
- Finance and accounting personnel
