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

If there’s one tax bill that advisors can’t afford to ignore in 2025, it’s the Big Beautiful Bill—formally known as the Opportunity for All Americans Act, or colloquially (and more memorably) as the BBB.

While the media has largely focused on its political implications, the real story for advisors lies in how this sweeping legislation affects business owners, high-income earners, and their financial teams—including you.

This article distills the most important takeaways for financial advisors, RIAs, and insurance professionals working with successful clients who need more than just a tax return—they need strategy.

The Big Picture: What the BBB Aims to Do

At its core, the BBB attempts to:

• Extend or lock in several tax breaks from the 2017 Tax Cuts and Jobs Act (TCJA),

• Tweak and expand deductions for middle-income Americans

• Incentivize business investment and U.S.-based manufacturing

• And introduce new savings and benefit tools (like “Trump Accounts”).

But the nuances—and the timing—are where things get complex.

Not all changes take effect at once. Some begin in 2025, others in 2026, and a few won’t show up until 2027. As an advisor, that means timing strategy is just as important as tax strategy.

1. The Estate Tax Exemption: “Permanent” (for Now)

Perhaps the most headline-worthy element of the BBB for wealthy families is that the federal estate and gift tax exemption is now set to remain at ~$15 million per individual and indexed for inflation.

Why This Matters:

• The previous “sunset” was slated for end-of-2025, potentially reducing the exemption by half.

• Now, high-net-worth clients have greater predictability for estate planning.

• But remember: "permanent" only means until Congress changes its mind again.

Advisor Takeaway:
If your clients made gifts early under the expectation of a shrinking exemption, you may want to revisit their estate strategy and confirm how much remaining exemption they have. Be proactive with GRATs, ILITs, and other tools.

2. Charitable Giving: The New 0.5% AGI Floor

Starting in 2026, charitable contributions will face a 0.5% floor before deductions can be taken. This means:

• A client earning $1 million AGI would lose the first $5,000 of charitable deduction.

• Only amounts above that floor would be deductible.

Why This Matters:

This change erodes the tax benefit of charitable giving—especially for clients who give smaller annual amounts or make large one-time donations.

Advisor Takeaway:
If clients are considering:

• Charitable remainder trusts (CRTs)

• Donor-advised funds (DAFs)

• Or large direct gifts

… then 2025 may be the optimal year to execute. Coordinate with their CPA and legal team to evaluate charitable acceleration strategies.

3. SALT Deduction Cap: Still There—With a Twist

While early drafts teased full repeal, the final BBB retains the $10,000 cap on state and local taxes (SALT). It does offer a sliding scale up to $40,000—but phases out entirely for joint filers over $600,000 in AGI.

Why This Matters:

Clients in high-property-tax areas (e.g. Texas, California, New York) often lose out on this deduction, and the BBB does little to change that for affluent earners.

Advisor Takeaway:
Keep using SALT workarounds via entity planning (e.g. PTE taxes) where available in your client’s state. Evaluate cash vs. accrual timing if 2025 planning still allows deductions under the new AGI thresholds.

4. Trump Accounts: A New Savings Tool for Families

Starting July 4, 2026, families can fund Trump Accounts—a new form of child-focused tax-deferred account.

Key Features:

• $5,000/year per child (until age 17),

• Access up to 50% at age 18 for:

  • First-time home purchases

  • Education,

  • Or other qualified expenses

• Remainder grows tax-deferred like an IRA

• Employers can contribute up to $2,500 per child (with typical nondiscrimination rules).

Why This Matters:

This account type combines features of:

• A 529 plan,

• A Roth-style vehicle (potentially)

• And employer-sponsored benefits.

Advisor Takeaway:
This is a powerful planning and retention tool for business owners with employees who have young children. Advisors should:

• Encourage business clients to offer matching contributions as a benefit

• Educate families on how to integrate Trump Accounts into long-term college or housing strategies

• Be prepared to contrast them with 529 plans or UTMA accounts.

5. Qualified Production Property Deduction: Massive Potential for Manufacturers

A sleeper provision in the BBB offers immediate expensing of manufacturing-related property purchases—called Qualified Production Property (QPP).

The Basics:

• Applies to buildings purchased new to the taxpayer and used in substantial manufacturing

• Entire building cost (not just equipment) may be fully deductible in Year 1,

• Must maintain manufacturing use for at least 10 years to avoid full depreciation recapture.

Example:

• A manufacturer buys a $10M facility ($7M building, $3M land)

• The full $7M building value could be written off in the first year

Advisor Takeaway:
If your clients are in any kind of:

• Manufacturing

• Food production

• Fabrication,

• Or even product assembly

… this is a game-changing planning opportunity. Pair it with cost segregation studies, bonus depreciation, and equipment financing strategies.

6. Overtime and Tips Deduction: Employee-Focused, But Employer-Relevant

The BBB adds two new below-the-line deductions starting in 2025:

• Overtime Pay Deduction: Up to $25,000 of incremental overtime pay is deductible,

• Tip Income Deduction: Also up to $25,000 of tips can be deducted from taxable income.

These provisions don’t change payroll taxes but may lower AGI for employees.

Advisor Takeaway:
This is a communication opportunity. Help your business owner clients:

• Educate employees on new tax savings

• Coordinate with HR/payroll teams for W-2 reporting

• Increase retention by helping employees keep more of their pay

7. Auto Loan Interest Deduction

A new personal deduction allows taxpayers to write off up to $10,000/year in auto loan interest—but only if:

• The car has some personal use,

• It is assembled in the U.S.,

• And other requirements are met.

While limited in scope, this could offer savings for employees or clients financing newer, U.S.-made vehicles.

Bonus Section: Qualified Plan Strategy Still Matters—But with Context

As discussed in the podcast, it’s worth reminding clients (and some advisors) that tax deferral is not always a net positive. Yes, qualified plans like 401(k)s and DB plans offer immediate deductions—but:

• They lock in inflexible rules for withdrawals,

• They compound future tax liability,

• And they limit retirement cash flow flexibility.

Advisor Takeaway:
Be the voice of balance. Evaluate whether a client:

• Has all their wealth in pre-tax buckets (which could be a time bomb),

• Could benefit from tax-diversified retirement income (e.g. permanent life insurance),

• Or needs Roth conversion strategies before RMD age.

Final Thoughts: Be the Leader Your Clients Deserve

The Big Beautiful Bill is more than just a tax policy—it’s a strategic planning moment. And the advisors who use it well will:

• Deepen trust with clients,

• Differentiate themselves from compliance-only professionals,

• And unlock new opportunities for AUM growth, risk planning, and retention.

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