The One Big Beautiful Bill Act, which was signed by President Donald Trump on Friday afternoon, carries significant implications for businesses and individuals alike—including key changes to solar and clean energy incentives, corporate taxation, estate taxation and Medicare provisions. Here's what you should know.
Solar & Clean Energy Credits Analysis
The biggest takeaway from this sector is the sooner-than-expected sunsetting of solar and clean energy tax credits. A full breakdown of our analysis can be found here, but a quick synopsis is below.
Solar and Wind Projects Face a Tighter Timeline: To qualify for tax credits, construction must start within a year of the bill’s passage or the projects must be operational by the end of 2027—a major shift from prior deadlines.
Watch Out for Foreign Ties: Using equipment or funding linked to certain foreign entities could disqualify your project from receiving tax credits. The guidelines are still evolving, so careful sourcing and documentation are essential.
You Can Still Transfer Credits—With Caveats: The ability to sell or transfer tax credits remains intact, but transfers to prohibited foreign entities are off the table.
Home and EV Tax Breaks Ending Sooner: The popular residential solar and electric vehicle credits will also sunset earlier than expected—by late 2025—so planning ahead is key.
Compliance Just Got More Complicated: With longer audit windows and stricter penalties, it’s more important than ever to review documentation and update contracts to reflect the new legal landscape.
Business Taxation Analysis
From expanded incentives for community development and housing to new limitations on executive compensation and increased IRS enforcement, the bill touches nearly every corner of the business world. Below are some of the most impactful provisions, and you can read our full analysis here.
Opportunity Zones and Community Investment Incentives Expanded: The OBBB makes Opportunity Zones and New Markets Tax Credits permanent, in addition to enhanced benefits for rural areas—offering long-term tax planning opportunities for investors and developers in underserved communities.
Stronger Support for Housing and Construction Projects: Low-Income Housing Tax Credit limits are raised, and more residential construction projects qualify for favorable tax treatment—encouraging developers to revisit financing strategies.
Business Deductions Made Permanent and More Generous: The bill restores 100% bonus depreciation, makes the 20% Qualified Business Income deduction permanent, and reinstates more favorable interest deduction rules—providing valuable relief for both large and small businesses.
Greater Scrutiny for Executive Compensation and Nonprofits: New rules tighten deductions for executive pay over $1 million and expand excise taxes on nonprofit compensation and university endowments—requiring careful review of high-compensation arrangements and endowment funding.
Increased Compliance Burdens and IRS Enforcement Powers: With tighter limits on charitable deductions, permanent excess business loss rules, and expanded enforcement of COVID-relief penalties, businesses should expect greater IRS scrutiny and take steps now to manage compliance risk.
Estate Planning and Medicare Analysis
Changes in estate tax law, Medicaid policy, and long-term care funding make it critical to revisit and revise trusts, gifting strategies, and business succession plans. Here’s more of what you should know.
Estate and Gift Tax Exemption Increased: Beginning in 2026, the estate and gift tax exemption rises to $15 million for individuals and $30 million for married couples, permanently extending the higher thresholds first set by the 2017 Tax Cuts and Jobs Act. Clients are encouraged to act quickly to take advantage of the exemption increases before potential future rollbacks by Congress.
Medicaid and Long-Term Care Eligibility Tightened: The OBBB imposes stricter scrutiny, new home equity limits, and more frequent eligibility checks—adding compliance burdens for those relying on public benefits.
Elimination of Reimbursements for Nonresidents: States will no longer receive federal reimbursements for providing medical assistance to nonresidents or individuals not lawfully in the U.S. after September 30, 2025.
Conclusion
The One Big Beautiful Bill represents a seismic shift in federal tax and entitlement policy, with far-reaching consequences for individuals, businesses, and nonprofit organizations. From accelerated clean energy credit deadlines to expanded business incentives and reduced public benefits for individuals, the legislation introduces both opportunities and compliance challenges. As the law takes effect, careful planning and proactive strategy will be essential. If you have questions about how these changes may impact your business, estate plan, or investment strategy, legal counsel can help guide your next steps.
