Listen to the podcast:  Insights About the BBB and More from Tracey at John Hancock

After weeks of political theater and a marathon overnight voting session, the Senate has officially passed its version of the “One Big, Beautiful Bill” (BBB)—a sweeping tax and policy package with long-term implications for high-net-worth clients and estate planners. The bill narrowly passed in a 51–50 vote, with Vice President JD Vance casting the tie-breaking vote.

While the headlines focus on broader political implications, we’re zeroing in on what this means for financial advisors, especially those working with business owners, affluent families, and multigenerational wealth planning.

The Headlines: Key Tax Provisions That Held Firm

Despite some last-minute Senate changes to healthcare and spending elements, most of the tax provisions that matter to our industry remained intact from the version the House passed earlier this year. Here are the most impactful components:

1. Estate Tax Clarity — Permanently

The Senate version locks in the federal estate and gift tax exemption at $15 million per individual, indexed for inflation. This removes the looming “sunset” provision and provides long-term predictability—a win for estate planning professionals.

For clients with estates north of $15M, this reaffirms the need for proactive planning tools like ILITs and premium-financed strategies to optimize legacy outcomes.

2. SALT Deduction Expanded — For Now

Taxpayers earning under $500,000 will see the State and Local Tax (SALT) deduction jump from $10,000 to $40,000, with a phase-out above that income level. However, this enhanced deduction sunsets in 2030, reverting back to the current $10,000 cap.

This creates a limited-time opportunity for clients in high-tax states to reduce exposure—strategic Roth conversions and charitable giving may be worth revisiting.

3. 199A Deduction Made Permanent

The 20% deduction for qualified business income (QBI) under Section 199A is here to stay. The House had floated an increase to 23%, but the Senate held the line at 20%.

Pass-through business owners benefit significantly. Advisors should consider layering in defined benefit plans or cash balance pensions to further reduce taxable income.

4. Child Tax Credit Boosted

The Child Tax Credit will increase to $2,200, without an expiration date. While not as aggressive as the House’s version, this solidifies an additional benefit for families.

Though more relevant for mid-income clients, this may open conversations about tax savings strategies for younger professionals or next-gen heirs.

What Happens Next?

The bill heads back to the House, which can either approve the Senate’s version as-is or call a conference committee to iron out discrepancies. Once unified, it will be sent to the President for signature—potentially before the July 4th holiday.

What This Means for Advisors

This legislation, if finalized, provides rare clarity on some long-standing tax questions. Advisors should seize this moment to revisit estate plans, gifting strategies, and income planning frameworks with clients.

ARC is closely monitoring developments and will continue to provide clear, actionable guidance as the bill progresses. Our Advanced Markets and Case Design teams are ready to support advisors in translating these provisions into real planning opportunities.

Stay tuned. Stay prepared. Stay confident.

Need help interpreting how this impacts your clients?

[Contact ARC Here]

Listen to the podcast:  Insights About the BBB and More from Tracey at John Hancock