CFP Board Breaks Down the One Big Beautiful Bill: Key Planning Provisions CFP® Pros Should Know
CFP® Board Updates
On July 7, 2025, the CFP Board issued a comprehensive summary of the tax provisions included in the recently passed One Big Beautiful Bill (OBBBA) — a landmark piece of legislation that makes sweeping changes to the federal tax code.
This legislation, originally proposed as the Tax Simplification and Prosperity Act of 2025, represents a mix of tax relief, expansion of certain credits, and renewed policy focus on workforce development. For CFP® professionals, it offers new opportunities — and new responsibilities — to guide clients through the shifting financial landscape.
Let’s unpack the key highlights from the CFP Board’s summary and translate them into practical insights for your financial planning work.
Key Tax Provisions with Planning Impact
The OBBBA makes permanent the elevated standard deduction initially created by the 2017 Tax Cuts and Jobs Act (TCJA).
Planning Insight: This may reduce the number of clients itemizing deductions, affecting strategies for charitable giving, mortgage planning, and medical expense deductions.
A major win for the CFP® community: the law explicitly allows 529 plan distributions to cover professional certification expenses — including costs associated with CFP® certification.
Planning Insight: This opens a new tax-advantaged pathway for clients investing in career development or funding certification for their children or employees.
The State and Local Tax (SALT) deduction cap, which was $10,000 under TCJA, is now doubled to $20,000 for joint filers.
Planning Insight: Clients in high-tax states could see meaningful savings — review itemization strategies for clients with sizable property or income taxes.
The bill reinstates and expands the above-the-line charitable deduction for filers not itemizing.
Planning Insight: This provides added incentive for philanthropic giving, especially among clients with simpler returns.
The Lifetime Learning Credit and American Opportunity Credit are now unified into a single education credit.
Planning Insight: This simplifies tax filing and expands credit eligibility for older or nontraditional students — important for clients pursuing mid-career education or supporting adult children.
What This Means for CFP® Professionals
The CFP Board’s advocacy was instrumental in shaping parts of this legislation — particularly the 529 plan change. For advisors, this reflects growing influence in public policy and a heightened responsibility to interpret and apply legislative shifts for clients.
As you review these changes with clients, consider the following steps:
- Reassess tax-efficient giving strategies based on new deduction rules
- Reevaluate education funding plans, especially for clients considering certification
- Model new scenarios using updated standard deduction and SALT thresholds
- Educate clients proactively, especially those affected by state tax policy changes
Bottom Line
The One Big Beautiful Bill is more than just a tax update — it’s a policy signal. CFP® professionals must stay ahead of these legislative developments to deliver the kind of personalized, strategic advice that clients expect in a post-TCJA world.
Source:
“Summary of Tax Provisions Included in the One Big Beautiful Bill (OBBBA)” – CFP Board (July 7, 2025)
https://www.cfp.net/news/2025/07/summary-of-tax-provisions-included-in-the-one-big-beautiful-bill
