Dakota CPA Connection Produced by the North Dakota CPA Society
Sept 2025 | Volume XXXVII | No. 05
What’s in the Big Beautiful Tax Bill? By Art Werner
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act into law. Passed by the Senate on July 1 (51–50 with Vice President Vance breaking the tie) and agreed to by the House on July 3, this sweeping tax and spending legislation solidifies and expands key provisions of the 2017 Tax Cuts and Jobs Act. The law makes permanent or extends the TCJA individual rate cuts, expands the standard deduction and child tax credit, and introduces new tax breaks—most notably eliminating federal income tax on cash tips and overtime pay for certain earners. Small businesses also receive expanded Section 179 expensing (up to 23%) and 100% bonus depreciation, plus adjustments to treatment of research and development deductibility. On the spending side, the bill imposes substantial cuts to Medicaid and SNAP (food stamp) funding, rescinds green energy incentives, increases funding for border enforcement and defense programs, and raises the federal debt ceiling by $5 trillion—expected to in-
In This Issue
crease deficits by $3 trillion or more over the next decade. For CPAs and tax advisors, implications are immediate:
•
•
•
•
While the law is now finalized, clients are just starting to digest its breadth— and state-specific fiscal effects are just emerging. Now’s the time to talk strategy and scenario planning so clients are prepared before the next tax filing season.
Client income thresholds may shift, and refund estimates could change due to increased standard deductions and credits. Tipped and hourly workers may need support understanding new exclusions for cash tips and overtime. Businesses should revisit spending and equipment purchase plans based on expanded expensing rules. Retirement and estate planning may change if top individual rates Grand Forks & Virtual now remain lower September 21-23 permanently. ndcpas.org/conv
• 3 Member Anniversaries • 2 President’s Message • 3 Directors Message • 2 New Members • 5 Meet our Members September 2025 | Page 1
• 6 High score exam award • 6 Exam Passers • 7 Annual Convention
• 8 B&I Miniseries • 11 National Spotlight • 13 Ethics Corner
Continued onBoard page 5 • 13 Internship • 13 Classifieds • 15 Tax Commissioner