The One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, made headlines for doubling the standard deduction and expanding the SALT deduction cap—changes set to impact millions of taxpayers in 2025 and beyond.

Yet, beneath those marquee items lie lesser-known terms that can unlock significant planning opportunities. Here are six hidden provisions you should be aware of:

1. Permanent, Indexed Estate Tax Exemption

OBBBA permanently extends and indexes the federal estate tax exemption, raising it from $14 million in 2025 to $15 million per decedent (and adjusting for inflation thereafter). Savvy estate planning can leverage this to shield more wealth from transfer taxes.

2. Full Expensing for Business Property and R&D

Gone are the sunset dates: OBBBA makes permanent full Section 179 expensing for qualifying business equipment and research & development costs. This certainty empowers businesses to plan capital investments with confidence.

3. SALT Deduction Cap Increase to $40,000

Beyond merely raising the cap, OBBBA allows up to $40,000 in state and local tax deductions for joint filers (phasing out above $500,000 of income). High-tax-state residents should revisit their state tax strategies in light of this phased-in increase.

4. No Tax on Cash Tips and Overtime Income

For tax years 2025–2028, OBBBA excludes up to $25,000 of cash tip income and $12,500 of overtime pay from federal taxation for eligible filers. Proper payroll reporting and documentation are essential to claim these new benefits.

5. New Senior Standard Deduction

A little-noticed perk for filers over age 65: through 2028, seniors may claim an extra $6,000 standard deduction, phasing out at $75,000 (single) or $150,000 (joint). Retirement and distribution planning can now include this added tax cushion.

6. Expanded Paid Leave and Childcare Credits

Employers can now claim enhanced tax credits—up to 25% of qualified wages and expenses—for providing paid family & medical leave, on-site childcare, and wellness programs. This fosters stronger retention and benefits strategies.