What Does the One Big Beautiful Bill Act Mean to Me

Individual income tax rates and exemptions

Lower rates enacted by TCJA made permanent.
Standard deduction increased, indexed for inflation.
Personal exemptions permanently eliminated.
Temporary deduction for individuals over age 65 created.
Miscellaneous itemized deductions permanently eliminated (except for certain educator expenses).
Benefit of allowable itemized deductions at the 37% marginal bracket limited to 35%.
Increased AMT exemption made permanent; phaseout thresholds reduced to 2018 levels indexed for inflation going forward.

Selected other individual deductions and credits

SALT deduction temporarily increased (with phaseout).
Child tax credit increased.
Reduced mortgage interest deduction made permanent; mortgage insurance premiums treated as interest.
Deductions for casualty losses and moving expenses limited.
Adoption credit made partially refundable.
Childcare credit increased (with phaseout).

Philanthropy

New deduction created for non-itemizers of up to $1,000 ($2,000 for married filing jointly).
Floor on charitable deductions is 0.5% of modified AGI.
Gain deferral by investing in QOF is continued and expanded.
Floor on corporate charitable deductions is 1%.

Estate and gift tax

Basic exclusion amount increased to $15 million ($30 million for married couples) in 2026; no expiration date; indexed for inflation.

New benefits

529 plans can be used to pay certain K though 12 expenses in addition to tuition.
Tax credit for gifts to scholarship-granting organizations
Deferred tax savings accounts (Trump Accounts) created for children under age 18.
Temporary deduction created for qualified tip income up to $25,000 (with phaseout)
Temporary deduction created for overtime up to $12,500, $25,000 for married filing jointly (with phaseout).
Temporary deduction created for car loan interest (up to $10,000) on certain loans for certain passenger use vehicles (with phaseout).

Certain credits phased out

Credit	No Longer Allowed For
Previously Owned Clean Vehicle	Vehicles acquired after September 30, 2025
Clean Vehicle	Vehicles placed in service after September 30, 2025
Qualified Commercial Clean Vehicle	Vehicles placed in service after September 30, 2025
Energy Efficient Home Improvement	Property placed in service after December 31, 2025
Residential Clean Energy	Expenditures made after December 31, 2025
New Energy Efficient Home	New energy efficient home acquired after June 30, 2026

Selected provisions for business owners

Qualified business income (QBI) deduction is made permanent and expanded.
New minimum QBI deduction of $400 created for those with income of at least $1,000 from active trade or business in which they participate.
Qualified opportunity zone benefits permanently renewed and enhanced.
Qualified small business stock gain exclusion enhanced and expanded.
100% bonus depreciation applies to property acquired and placed in service after January 19, 2025.
The rules for deducting business interest expense are changed. • Certain qualified production property may receive a 100% depreciation allowance.
Election for expensing of certain domestic research and experimental expenditures restored, retroactively, for certain businesses.

With careful planning, you may be able to take advantage of or mitigate unfavorable results resulting from the BBB. Your PNC team can work with your tax, legal and other advisors to help you achieve your financial goals and objectives considering these law changes. For more information, contact any member of your PNC team.

These materials are furnished for the use of PNC and its clients and do not constitute the provision of investment, legal, or tax advice to any person. They are not prepared with respect to the specific investment objectives, financial situation, or particular needs of any person. Use of these materials is dependent upon the judgment and analysis applied by duly authorized investment personnel who consider a client’s individual account circumstances. Persons reading these materials should consult with their PNC account representative regarding the appropriateness of investing in any securities or adopting any investment strategies discussed or recommended herein and should understand that statements regarding future prospects may not be realized. The information contained herein was obtained from sources deemed reliable. Such information is not guaranteed as to its accuracy, timeliness, or completeness by PNC. The information contained and the opinions expressed herein are subject to change without notice. Past performance is no guarantee of future results.

Neither the information presented nor any opinion expressed herein constitutes an offer to buy or sell, nor a recommendation to buy or sell, any security or financial instrument. Accounts managed by PNC and its affiliates may take positions from time to time in securities recommended and followed by PNC affiliates. Securities are not bank deposits, nor are they backed or guaranteed by PNC or any of its affiliates, and are not issued by, insured by, guaranteed by, or obligations of the FDIC or the Federal Reserve Board. Securities involve investment risks, including possible loss of principal.

The PNC Financial Services Group, Inc. (“PNC”) uses the marketing names PNC Private Bank® and PNC Private Bank Hawthorn® to provide investment consulting and wealth management, fiduciary services, FDIC-insured banking products and services, and lending of funds to individual clients through PNC Bank, National Association (“PNC Bank”), which is a Member FDIC, and to provide specific fiduciary and agency services through PNC Delaware Trust Company or PNC Ohio Trust Company. PNC does not provide legal, tax, or accounting advice unless, with respect to tax advice, PNC Bank has entered into a written tax services agreement. PNC Bank is not registered as a municipal advisor under the Dodd-Frank Wall Street Reform and Consumer Protection Act. “PNC Private Bank” and “PNC Private Bank Hawthorn” are registered marks of The PNC Financial Services Group, Inc.

Investments: Not FDIC Insured. No Bank Guarantee. May Lose Value.

What Does the One Big Beautiful Big Act Mean to Me

Individual income tax rates and exemptions

Philanthropy

New benefits

Selected provisions for business owners

Important Legal Disclosures and Information