I was recently invited onto The Dave Congalton Show on KVEC, which that day was guest hosted by my long-time friend Jim Serybert. Jim and I go way back — he even mentioned on air that we’ve known each other since I was in junior high — which made the conversation especially meaningful.
Over the course of nearly an hour, we unpacked the new One Big Beautiful Bill (OBBBA) — a sweeping piece of tax legislation signed on July 4, 2025 — and what it means for families and businesses here on the Central Coast.
You can listen to the full conversation here:
*Audio courtesy of KVEC’s The Dave Congalton Show
Key Takeaways From the Discussion
- Energy & EV Credits Are Disappearing Fast
- The 30% residential solar credit ends after December 31, 2025.
- The electric vehicle (EV) and used EV credits expire September 30, 2025.
- Families considering upgrades need to act quickly before installers and dealers get backed up.
- New “Trump Accounts” Introduced
- Beginning July 2026, families can contribute up to $5,000/year (after-tax) to new tax-favored accounts for children.
- Accounts grow tax-free, and if a child is born between 2025–2028, parents also receive a $1,000 starter credit.
- Employers, including S Corps, can contribute up to $2,500 annually as a tax-free fringe benefit.
- No-Tax-on-Tips Rule
- Up to $25,000 in tips per year can now be excluded from income — a big change for restaurant workers, beauticians, and others in service industries.
- Employers in these industries may also claim payroll tax credits on tip wages.
- Overtime Pay Relief
- Workers can deduct up to $12,500 in overtime earnings from taxable income.
- This doesn’t change paycheck withholdings, but you’ll see the benefit when filing your return.
- Senior Deduction
- A new $6,000 senior deduction applies for those 65+ making under $75,000 (single) or $150,000 (married). It phases out gradually above that level.
- This creates new opportunities for Roth conversions and retirement income planning.
- SALT Cap Relief
- The State and Local Tax (SALT) deduction cap rises from $10,000 to $40,000 — a major benefit for California families.
- However, the benefit phases out for incomes above $500,000, and marriage can impact eligibility.
- Business Changes
- 1099 Threshold: The reporting threshold rises from $600 to $2,000 starting in 2026.
- Qualified Business Income (QBI): Expanded thresholds allow more professionals to claim the full 20% deduction.
- Bonus Depreciation: Restored to 100% expensing for qualifying assets with <20-year lives.
Why This Matters Locally
From servers in SLO restaurants to families considering solar panels in Arroyo Grande, these changes will be felt quickly here on the Central Coast. The OBBBA touches everyday finances in ways that aren’t always obvious — which is why it’s so important to break it down clearly.
At Rohr CPAs, our role is helping clients see through the complexity, understand where the opportunities are, and plan proactively before deadlines pass.