Trump’s One Big Beautiful Bill (OBBBA): Tax Law Changes to Know in 2025
I was trying to avoid writing about it, but now that we’re getting into mid-September, I feel like I have to share what’s inside Trump’s One Big Beautiful Bill Act (OBBBA). And friend, it’s not really beautiful at all.
If you’ve been following me for a while, you know that I don’t support Trump and I definitely don’t support this bill. In fact, I even called and wrote to my representatives to keep it from passing. But here we are, and ignoring it won’t help anyone. So let’s walk through what’s in this tax law, what’s changing in 2025, and the deadlines you really need to know this September.
Of course, this is a 1,000-page tax bill, so I will not be going through most of it.
Here’s what stands out (ALL HORRIBLE):
$1.5 trillion in spending cuts
$3–4 trillion added to the federal deficit by 2034
ICE budget quadrupled
Families making over $500k get 15x more tax benefits than median-income families
Cuts to programs that families under $65k rely on
Biden-era clean energy tax credits repealed
There are a few “positives” — like a higher standard deduction, changes to the child tax credit, and temporary provisions such as “no tax on tips” or “no tax on overtime.” But these are short-term fixes, not lasting reforms.
Urgent Deadlines: EV Tax Credits and Clean Energy
Here’s where this tax law gets especially time-sensitive:
Federal EV tax credits end September 30, 2025.
Up to $7,500 for new EVs.
Up to $4,000 for used EVs.
To qualify, you need a signed contract + payment by 9/30 (delivery can happen later).
Clean energy tax credits for home efficiency expire December 31, 2025.
A new car loan interest deduction runs through 2028. Households under certain income thresholds may deduct up to $10,000/year in interest on qualifying new American-made cars.
👉 My advice: Just because there are tax breaks, don’t buy a new car, if you absolutely don’t need one. The average new car payment is over $700/month with interest rates averaging about 5.2%-7%, if you qualify for the lowest rates. If your current car is still reliable, keeping it is one of the best financial moves you can make. (I’m still keeping my 2003 VW Passat.)
Other Tax Law Changes in 2025
The OBBBA also includes several temporary provisions and student loan changes:
Tips: Up to a $25,000 deduction for service workers (through 2029).
Overtime: Up to $12,500 (single) / $25,000 (joint) deduction for overtime pay.
Seniors: A temporary $6,000 higher standard deduction for those 65+ with modest incomes.
Student loans: Starting July 2026, repayment plans shrink from 7 to 2. Biden’s SAVE plan ends, so start getting yourself into the current administration’s government forgiveness program.
The Takeaway
The Trump tax law is being marketed as “help for families.” But the reality? The One Big Beautiful Bill Act funnels the biggest benefits to high-income households, cuts programs that lower- and middle-income families depend on, and dangles short-lived perks like EV tax credits and car loan deductions.
Yes, some provisions might be worth noting — especially if you’re looking to buy a new car and wanted to get an electric vehicle. Do so before the September 30, 2025 deadline. But again, don’t let flashy tax breaks drive your financial choices.
This may be a year to get a tax accountant who is knowledgeable about all of the changes.
With Love & Gratitude,
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