The One Big Beautiful Bill Act now is law – here’s what’s in it for taxpayers

FOX10 News

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The video explains that the One Big Beautiful Bill Act—formally known as the Inflation Reduction Act—delivers a mix of new tax breaks, extended incentives, and targeted revenue raisers that every taxpayer should know about. Viewers learn that the headline benefits revolve around clean-energy credits. The residential energy-efficient property credit, which had been scheduled to phase out, is reborn as a 30 percent credit through 2032 and now applies to items such as heat pumps, high-efficiency windows, and even home batteries. A revamped Energy Efficient Home Improvement Credit offers up to $1,200 annually instead of a lifetime cap, giving homeowners a fresh chance each tax year to offset the cost of upgrades. Combined with a separate 30 percent credit for rooftop solar, these provisions aim to cut utility bills while trimming a filer’s tax liability.

Electric-vehicle incentives also get a makeover. The law extends the $7,500 credit for new EVs but ties eligibility to domestic assembly, battery-component sourcing, and income caps of $150,000 (single) or $300,000 (joint). A brand-new $4,000 credit appears for used EVs priced under $25,000, widening access for middle-income drivers. Dealers can apply the credit at the point of sale beginning in 2024, effectively turning it into an instant discount. In addition, the Act introduces commercial clean-vehicle credits that allow businesses, gig-economy workers, and even landlords to electrify fleets at a lower after-tax cost.

Health-care savings surface through a three-year extension of enhanced Affordable Care Act premium subsidies, preventing the sudden increase in marketplace premiums that was slated for 2023. Seniors on Medicare gain an annual $2,000 cap on out-of-pocket prescription costs starting in 2025, plus immediate $35 insulin price limits. While these items do not flow through the 1040 form, they free up household cash flow and reduce overall medical expense deductions.

To pay for the incentives, the Act introduces two corporate tax changes that do not touch individual tax rates directly but could influence investments. A 15 percent minimum tax applies to corporations reporting at least $1 billion in book income, and a 1 percent excise tax now targets stock buybacks. Wall Street analysts caution that companies may rethink repurchase strategies, potentially affecting dividend policies and portfolio returns.

Finally, the video highlights the IRS funding infusion: roughly $80 billion over a decade for technology upgrades, customer service, and enforcement. For typical taxpayers, the promise is faster refunds and clear guidance; for high-income filers and complex partnerships, expect more audit scrutiny. The overall message is that proactive planning—claiming energy credits each year, timing EV purchases, reviewing health-care options, and keeping airtight records—will help taxpayers capture the Act’s savings while steering clear of new enforcement risks.

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