Federal Tax Reform: The Big ‘I’ Shares Takeaways From New Tax Law

• By: Raaed Haddad
• July 17, 2025

Now that the One Big Beautiful Bill Act (OBBB) has been signed into law, independent insurance agents may be wondering what tax provisions were included as part of the expansive package. While not comprehensive, this summary from the Big “I” provides a brief overview of the federal tax reform.

The OBBB represents a sweeping overhaul of U.S. tax policy and makes permanent much of the 2017 Tax Cuts and Jobs Act (TCJA) while enacting new tax policy.

Most notably for many independent insurance agencies, the bill makes permanent the 20% pass-through deduction for qualified business income under Section 199A. According to the 2024 Agency Universe Study, 86% of agencies are structured as pass-through entities and are able to take full advantage of the deduction.

The OBBB does not change the corporate rate, which was made permanent by the TCJA.

Big “I” members are encouraged to consult with their accountants, lawyers and other relevant professionals related to tax and estate planning based on their individual circumstances.

Raaed Haddad is Big “I” director of federal government affairs