Big Tax Changes Are Here — Here’s What You Need to Know Before 2026: OBBBA Year-End Planning & What's Ahead

Laurie Barrett |

Big Tax Changes Are Here — Here’s What You Need to Know Before 2026

Year-End Tax Moves Just Got More Important

The “One Big Beautiful Bill Act” (OBBBA) was signed into law this summer — and it’s the most sweeping rewrite of individual tax rules since the TCJA.  While some provisions take effect over time, a few key planning opportunities need your attention now — as soon as September 30, 2025.

Here are three things to focus on before year-end:

1.  Charitable giving

  • Starting in 2026, a new 0.5%-of-AGI floor will reduce how much you can deduct. If you're planning to give, 2025 may be the more tax-efficient year to do it.

📌 Deadline: Make charitable gifts by December 31, 2025

🚨 Key Detail: Your charitable contribution must exceed 0.5% of your Adjusted Gross Income (AGI) in 2026 to receive any deduction — for example, a $600K AGI household must give over $3,000 to even begin deducting.  For those of you that remember the “Pease Limitations”, this loss of some of your deduction is further complicated by the further loss of a portion of all itemized deductions for those in the 37% bracket.

2.  Incentive Stock Options (ISOs)

  • Alternative Minimum Tax (AMT) exemption rules get less favorable in 2026, and, with the relaxation of State and Local Tax (SALT) deduction limitation, more taxpayers will be subject to AMT.  For some, exercising before year-end could result in lower taxes.

📌 Deadline: Exercise ISOs by December 31, 2025

🚨 Key Detail: Beginning in 2026, the phaseout thresholds drop and the AMT phaseout rate doubles — making ISO exercises more expensive for many high earners.

3.  Clean energy credits

  • OBBBA accelerates the sunset on many energy efficiency incentives — solar panels, EVs, and more. If you’re considering installing solar panels or buying an EV,  timing matters.

📌 Deadlines:

  • EV purchase: Credit expires September 30, 2025
  • Home energy upgrades (windows, heat pumps, insulation, etc.): Credit ends December 31, 2025
  • Solar and battery installations: 30% credit ends December 31, 2025

🚨 Key Detail: To qualify, installation (not just purchase) must typically be complete before the deadline.
 


Over the coming weeks, we’ll break the new law into bite-size topics to help you understand how it impacts you, your family, and your long-term planning.

Next up: Changes to tax brackets and standard deductions — and why seniors may be eligible for a brand-new $6,000 deduction.

As always, we’re here to help you make sense of the moving pieces.  If you have questions or want to explore personalized strategies before year-end, just let us know.