07/10/2025

One Big Beautiful Bill Act: What Nonprofits Need to Know

Its 800-plus pages include several provisions related to nonprofits

On July 4, 2025, President Donald Trump signed into law the budget reconciliation bill originally named the One Big Beautiful Bill Act (OBBBA), which makes permanent the tax cuts introduced in the Tax Cuts and Jobs Act (TCJA) of 2017. Its 800-plus pages include several provisions related to charitable giving and the nonprofit sector. Let’s review some of the highlights.

Employee Retention Credit Deadline Moved Forward

The Exempt Organizations Examinations function of the IRS has been mired in reviews of unpaid employee retention credit (ERC) claims for credit or refund for years.

Prior IRS guidance on the ERC, a refundable tax credit for certain tax-exempt organizations that had employees and were affected during the COVID-19 pandemic, generally allowed organizations to claim it for 2020 tax periods by April 15, 2024, and 2021 tax periods by April 15, 2025.

Please select this link to read the complete article from Dean Dorton.