One Big Beautiful Bill Act & CPA Exam 2026 Guide
How the One Big Beautiful Bill Act Affects CPA Candidates in 2026
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, is the most significant U.S. tax reform since the 2017 Tax Cuts and Jobs Act. CPA candidates sitting for REG or TCP on or after July 1, 2026, must study its provisions — those testing before that date do not.
💡 Key Takeaway
- The OBBBA was signed into law on July 4, 2025 — it permanently extends most TCJA individual and business tax provisions.
- OBBBA content will not be tested on the CPA Exam until July 1, 2026 — candidates testing before that date study pre-OBBBA law only.
- Only the REG and TCP sections are affected — FAR, AUD, BAR, and ISC are not impacted by OBBBA.
- Key new testable topics include: no-tax-on-tips, overtime deduction, SALT cap increase, bonus depreciation, Trump Accounts, and estate tax changes.
- Review providers including Surgent CPA Review have already updated their materials to reflect the July 1, 2026 cutoff.
📋 Table of Contents
- What Is the One Big Beautiful Bill Act (OBBBA)?
- How Does OBBBA Impact the CPA Exam?
- What's Testable Before vs. After July 1, 2026?
- REG Section: Key OBBBA Changes to Know
- TCP Section: How OBBBA Reshapes Tax Planning
- What's the Best Study Strategy Around the July 1 Cutoff?
- Are CPA Review Courses Updated for OBBBA?
- About the Author
- Frequently Asked Questions
What Is the One Big Beautiful Bill Act (OBBBA)?
The One Big Beautiful Bill Act (OBBBA) — formally H.R. 1 — is landmark U.S. federal tax legislation signed by President Trump on July 4, 2025. It permanently extends most individual and business tax provisions of the 2017 Tax Cuts and Jobs Act (TCJA) that were set to expire after 2025, while also introducing several new tax benefits and phasing out certain energy-related credits from the Inflation Reduction Act.
In scope, the OBBBA is widely regarded as the most sweeping overhaul of the U.S. Internal Revenue Code (IRC) since the TCJA. According to Surgent CPE, the OBBBA "represents the most sweeping tax law since the 2017 Tax Cuts and Jobs Act" — and its reach into individual income tax, business deductions, estate planning, and international tax rules makes it directly relevant to the CPA Exam's tax-heavy sections.
"The OBBBA represents the most sweeping tax law since the 2017 Tax Cuts and Jobs Act, giving professionals a practical opportunity to understand both individual and business tax impacts of the legislation." — Surgent CPE, July 2025
How Does the OBBBA Impact the CPA Exam?
The AICPA Board of Examiners has approved a phased approach to incorporating OBBBA provisions into the Uniform CPA Examination. Only two sections are directly affected: REG (Regulation) and TCP (Tax Compliance and Planning). The AICPA's Uniform CPA Examination Blueprints for these two sections will be updated to reflect OBBBA provisions — but only those that fall within the existing Blueprint scope will be tested. Not every provision of the OBBBA will appear on the exam.
The other four sections — FAR, AUD, BAR, and ISC — are largely unaffected by the OBBBA. Some smaller updates to AUD (quality management standards) and BAR (GASB updates) are occurring in 2026, but these are far smaller in scope than the OBBBA changes to REG and TCP.
Key Definitions
REG (Regulation): A core CPA Exam section covering federal taxation of individuals, corporations, partnerships, and estates, plus business law. One of four required core sections.
TCP (Tax Compliance and Planning): A CPA Exam discipline section focused on advanced individual and entity tax planning. One of three discipline sections — candidates choose one.
TCJA (Tax Cuts and Jobs Act): The sweeping 2017 U.S. tax reform law whose major provisions were set to expire after 2025 — now permanently extended by the OBBBA.
What's Testable Before vs. After July 1, 2026?
The single most important thing CPA candidates need to know: if you sit for REG or TCP before July 1, 2026, OBBBA content will not appear on your exam. The AICPA's phased approach means candidates testing in Q1 and Q2 2026 (through June 30) should study pre-OBBBA tax law — including 2025 sunset provisions that remain testable through June 30, 2026. Candidates testing from July 1, 2026 onward must incorporate OBBBA provisions into their preparation.
| Topic | Testing Before July 1, 2026 | Testing On/After July 1, 2026 |
|---|---|---|
| OBBBA provisions | ❌ Not tested | ✅ Testable (2024–2025 effective dates) |
| TCJA sunset provisions | ✅ Still testable through June 30, 2026 | ❌ No longer testable after June 30, 2026 |
| Pre-OBBBA individual tax rates | ✅ Study as current law | ✅ Now permanent under OBBBA |
| No-tax-on-tips / overtime deductions | ❌ Not tested | ✅ Testable from July 1, 2026 |
| SALT deduction cap ($10,000) | ✅ $10,000 limit applies | ✅ Temporarily raised to $40,000 (2025–2029) |
| Bonus depreciation (100%) | ⚠️ Phase-down rules apply | ✅ Permanently restored to 100% under OBBBA |
| OBBBA provisions effective 2026+ | ❌ Not tested | ⚠️ Testable 6 months after effective date (normal policy) |
⚠️ Important:
OBBBA provisions with effective dates in 2026 or later do not automatically become testable on July 1, 2026. They follow the standard AICPA policy: testable in the calendar quarter beginning six months after their effective date. Always confirm your exam window rules with your review provider.
REG Section: What OBBBA Changes Are Testable from July 2026?
The REG section covers federal taxation across individuals, corporations, partnerships, and estates. Starting July 1, 2026, the following OBBBA provisions with 2024–2025 effective dates will become part of REG's testable universe — aligned with the AICPA's updated Uniform CPA Examination Blueprints.
Individual Tax Changes (REG)
- Extension of TCJA individual tax rates: The seven individual income tax brackets established by the TCJA are made permanent, eliminating the scheduled 2025 sunset.
- Increased standard deduction: Higher standard deduction amounts are made permanent, replacing the pre-TCJA lower figures.
- No tax on qualifying tips: A new above-the-line deduction for qualifying tip income (capped) for eligible workers is available for tax years 2025–2028.
- No tax on overtime pay: Introduces a deduction for qualified overtime pay (within limits), available for 2025–2028 tax years.
- Enhanced Child Tax Credit: Increased by $200, now $2,200 per qualifying child, made permanent.
- SALT deduction cap raised: Temporarily increased to $40,000 ($20,000 MFS) for 2025–2029, reverting to $10,000 in 2030. Note: the cap phases down for high earners above $500,000 MAGI.
- AMT exemption increases: Higher Alternative Minimum Tax (AMT) exemption amounts with modified phaseout thresholds made permanent.
Estate, Gift & Transfer Tax (REG)
- Estate and gift tax exemption raised to $15 million ($30 million for married couples) in 2026, indexed for inflation — a significant increase from the TCJA's $12.92 million baseline.
- GST (Generation-Skipping Transfer) tax exemption similarly increased, with parity to the estate/gift exemption maintained.
- Remittance / excise tax: A 1% excise tax on certain personal fund transfers from U.S. senders to recipients abroad, effective 2026 — a new IRC provision testable six months after its effective date.
✅ Pro Tip:
If you are a CPA candidate planning your exam section order, aim to take both REG and TCP either both before or both after July 1, 2026. Splitting them across the cutoff date means studying two different sets of tax rules — a significant waste of study time.
TCP Section: How Does OBBBA Reshape Tax Compliance and Planning?
The TCP discipline section goes deeper than REG into tax strategy, multi-entity planning, and long-term compliance. The OBBBA's provisions are particularly significant here because TCP candidates must understand not just the rules, but how to apply them in planning scenarios. Several OBBBA provisions land squarely in TCP territory.
Business Tax Changes (TCP)
- 100% Bonus depreciation restored permanently: The TCJA's 100% first-year bonus depreciation was phasing down (80% in 2023, 60% in 2024). OBBBA restores it permanently to 100% — a key planning tool for business asset acquisitions.
- Full R&D expensing restored: Domestic research and development costs may again be fully expensed in the year incurred (rather than amortised over 5 years under prior law).
- Section 179 expensing limits raised: Higher immediate expensing limits for qualifying business property, now permanently elevated.
- QBI deduction (§199A) extended permanently: The 20% qualified business income deduction for pass-through entities (S-corps, partnerships, sole proprietors) is made permanent — a critical TCP planning concept.
- Business interest limitation (§163(j)): Adjusted to exclude Subpart F and Net CFC Tested Income from Adjusted Taxable Income, easing the limitation for multinational businesses.
New Savings Vehicles (TCP)
- "Trump Accounts" — new children's savings accounts: Government-seeded, tax-deferred savings accounts for children born 2025–2028, with contribution limits and tax-favoured growth. Particularly relevant for TCP questions on family tax planning and tax-advantaged accounts.
International Tax (TCP)
- GILTI (Global Intangible Low-Taxed Income): Deemed paid credit for taxes attributable to tested income increased from 80% to 90%.
- FDII replaced: The OBBBA modifies the definition of Deduction Eligible Income (DEI), replacing Foreign-Derived Intangible Income (FDII).
- BEAT rate increase: Base Erosion and Anti-Abuse Tax (BEAT) rate rises from 10% to 10.5%.
Candidates who have selected TCP as their CPA Exam discipline section and are testing from July 2026 onward need to understand these provisions at a planning and application level — not just recall the rules.
What Is the Best CPA Exam Study Strategy Around the July 1, 2026 Cutoff?
Your optimal strategy depends entirely on when you plan to sit. The cleanest approach is to avoid splitting REG and TCP across the July 1 cutoff. According to Surgent CPA Review, candidates should "marry" their discipline to its closely related core section: take REG and TCP back-to-back, either both before or both after July 1, 2026. Splitting them requires you to study two different versions of tax law simultaneously — and that's unnecessary stress.
📋 Decision Framework: Which Tax Law Should You Study?
- Testing REG/TCP before June 30, 2026? → Study pre-OBBBA tax law. Ignore OBBBA content entirely. TCJA sunset provisions remain testable through June 30.
- Testing REG/TCP on or after July 1, 2026? → Study OBBBA-updated law. Your review course should automatically serve you OBBBA content if your exam date is July 1 or later.
- Splitting REG and TCP across the cutoff? → Strongly consider rescheduling to keep both sections on the same side of July 1. You'll save significant study time.
- Haven't started studying yet? → If you can't complete REG + TCP by June 30, commit to studying OBBBA-updated materials from the start. Don't learn the old law and then re-learn the new law.
- Using a review course? → Confirm your provider's exam date settings. Providers like Surgent CPA Review auto-adjust content based on your planned exam date.
This timeline strategy is not just exam-smart — it mirrors real-world tax practice. The tax professionals who understand OBBBA provisions earliest will have a meaningful career advantage, particularly in individual tax planning, pass-through entity work, and estate planning. Your CPA study materials should reflect this shift.
Are CPA Review Courses Already Updated for OBBBA?
Yes — all major CPA review providers have responded quickly to the AICPA's guidance. Surgent, Gleim, Becker, and UWorld have each confirmed they are updating their REG and TCP course materials to reflect the July 1, 2026 testing cutoff. The key differentiator between providers is how intelligently their platforms manage the content switch for individual candidates.
| Provider | OBBBA Update Approach | Available via Eduyush? |
|---|---|---|
| Surgent CPA Review | Auto-adjusts content based on your planned exam date — enter June 30 and see pre-OBBBA; enter July 1 and see OBBBA-updated materials. AI-driven adaptive study engine. | ✅ Yes — view Surgent CPA on Eduyush |
| Gleim CPA Review | Flags expired provisions and notes when OBBBA changes become testable within study materials. | ❌ Not available via Eduyush |
| Becker CPA Review | Blueprint exposure draft updates already published; content being updated per July 1 rollout. | ❌ Not available via Eduyush |
| UWorld Roger CPA | Team evaluating OBBBA impact; content updates rolling out based on AICPA detailed guidance. | ❌ Not available via Eduyush |
Among these, Surgent's adaptive learning engine is uniquely suited to the OBBBA transition. Because Surgent's platform delivers content based on your planned exam date — not a static course version — candidates don't need to manually track which version of the law they're studying. It's the most efficient way to prepare given the July 1 cutoff. You can explore Surgent CPA Review's 2026-updated course through Eduyush's Surgent CPA page.
✅ Pro Tip:
If you're currently mid-study and your planned exam date is close to July 1, 2026, check your review course settings immediately. Some providers require you to update your exam date to trigger the OBBBA content switch. Don't discover this discrepancy on exam day. Also review the CPA exam first-try strategy guide for broader study planning advice.
For candidates who want to compare the best CPA study materials and books across providers, Eduyush has an independent comparison guide updated for 2026.
Frequently Asked Questions: OBBBA & the CPA Exam
What is the One Big Beautiful Bill Act and how does it affect the CPA Exam?
The One Big Beautiful Bill Act (OBBBA) is a major U.S. tax law signed on July 4, 2025, that permanently extends most TCJA provisions and introduces new individual and business tax rules. It affects the CPA Exam's REG and TCP sections — but only for candidates testing on or after July 1, 2026. All other sections (FAR, AUD, BAR, ISC) are unaffected.
When will OBBBA content be testable on the CPA Exam?
OBBBA provisions with 2024 and 2025 effective dates become testable in the REG and TCP sections starting July 1, 2026. Provisions with 2026 or later effective dates will follow the standard AICPA policy — becoming testable in the calendar quarter six months after their effective date. Candidates testing before July 1, 2026 will not encounter OBBBA content.
Should I rush to take REG and TCP before July 1, 2026?
Not necessarily — it depends on your readiness. If you can genuinely prepare and pass REG and TCP before July 1, doing so avoids learning new OBBBA content. However, a rushed and failed attempt costs you time and money. If you can't comfortably prepare both by June 30, commit fully to OBBBA-updated materials and plan for post-July 1. Taking REG and TCP together (either both before or both after) is the most efficient approach.
What are the biggest OBBBA tax changes CPA candidates need to know?
The key provisions are: permanent extension of TCJA individual rates, a temporary SALT deduction increase to $40,000 (2025–2029), new deductions for tip income and overtime pay (2025–2028), permanent 100% bonus depreciation and R&D expensing, permanent §199A QBI deduction, estate/gift tax exemption raised to $15 million, and new Trump Accounts savings vehicles for children born 2025–2028.
Is the TCP section more affected by OBBBA than REG?
Both sections are significantly affected, but the impact differs by depth. REG candidates must know the rules themselves — what changed and how. TCP candidates need to understand the planning implications — how to apply OBBBA changes in multi-entity scenarios, tax strategy decisions, and long-term compliance planning. TCP candidates choosing this discipline should treat OBBBA as central to their exam prep, not peripheral.
Are CPA review courses already updated for the OBBBA changes?
Yes — all major providers (Surgent, Gleim, Becker, UWorld) have confirmed they are updating REG and TCP content ahead of the July 1, 2026 deadline. Surgent CPA Review is notable for automatically adjusting content delivery based on your planned exam date, so candidates studying for pre- or post-July exams both receive the correct version of the law without manual adjustments.
How does OBBBA affect international CPA candidates studying from India?
International CPA candidates — including those from India pursuing the US CPA qualification — follow the same exam rules as domestic candidates. The July 1, 2026 OBBBA cutoff applies regardless of where you sit the exam. Candidates in India who have chosen TCP as their discipline and plan to test in the second half of 2026 should begin incorporating OBBBA provisions now. Check our CPA guide for Indian accountants for more context on the overall pathway.
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CPA Study materials FAQ's
What is the best CPA study material for Indian students?
The best CPA study material for Indian students in 2026 is an adaptive online review course that covers all 6 CPA exam sections and includes MCQs, simulations, and mock exams. Surgent, Becker, Gleim, and UWorld Roger are all widely used options; the right choice depends on your budget, learning style, and timeline. Surgent is often a strong fit for working professionals who want adaptive AI, all‑section access, and India‑specific pricing via Eduyush, while still getting 9,000+ MCQs, 500+ simulations, and 700+ video hours.
Can I pass the CPA exam with self‑study only?
Yes, many Indian candidates pass the CPA exam through self‑study when they follow a structured plan and use a high‑quality online course. An adaptive platform that tracks your readiness and focuses on your weak areas is usually more effective than relying on books or coaching alone. If you can consistently study 15–25 hours per week, follow performance metrics like readiness scores, and regularly take mock exams, self‑study can be enough to clear all sections.
Which CPA review course is best in India?
There is no single “best” CPA review course for every Indian student, but some providers are better suited to particular profiles. Surgent is often a good option for self‑paced, working professionals who value adaptive AI, all‑section access (Core + Disciplines), and competitive India‑level pricing. Becker tends to suit candidates whose employers sponsor the full cost and who prefer a more linear, brand‑heavy course structure, while Gleim works well for those who want maximum practice questions and don’t mind a more text‑heavy experience.
Is Surgent better than Becker for CPA?
Surgent can be a better fit than Becker for self‑paced, cost‑sensitive candidates who want adaptive technology, shorter average study times, and access to all CPA sections in one package. Its tools like A.S.A.P. Technology and ReadySCORE are designed to target weaker areas and estimate exam readiness, which appeals to working professionals who need efficiency. Becker, on the other hand, reports strong results for candidates who complete its structured “exam‑day ready” pathway and is often preferred in Big 4 and large firms where the course is fully sponsored and brand recognition is important.
How long does it take to complete the CPA from India?
Most Indian candidates take between 12 and 24 months to complete the CPA exam, depending mainly on their background and weekly study hours. An aggressive plan with 20–25 hours per week can finish all sections in about 12 months, while a balanced plan with 15–18 hours per week usually targets around 18 months. The AICPA’s 30‑month rolling window gives you enough time to plan retakes if needed, and many working professionals in India naturally follow the 18‑month “balanced” timeline.
Do I need CPA books or is an online course enough?
For most candidates, a comprehensive online CPA course is sufficient, because it includes updated content, question banks, simulations, and mock exams aligned to the latest exam blueprint. Physical books are optional and work best as supplements for deep dives into complex areas such as governmental accounting, advanced US GAAP topics, or detailed tax rules. If budget is limited, it usually makes more sense to prioritise a good online review course first and add books only for topics where you personally want more reading.
What’s unique about Surgent’s access to all 6 sections?
Surgent includes all 6 CPA exam sections (the 3 Core sections plus all 3 Discipline options) in every package, which is not the case with many competitors. This means you can switch your chosen Discipline (for example, from BAR to TCP) without paying extra and can still self‑study additional sections for career development even if they are not part of your exam combination. For Indian candidates who are still deciding their Discipline or who work in roles that touch multiple areas (audit, tax, and analytics), having all 6 sections available provides more flexibility.
How much does the CPA journey typically cost for Indian candidates?
Most Indian candidates can expect a total CPA investment in the range of roughly ₹2.75–3.00 lakhs when using India‑priced courses, excluding foreign travel if required. This usually includes application and exam fees, evaluation costs, a full CPA review course, and incidental expenses like study materials and local registration support. Choosing an India‑priced online course such as Surgent via Eduyush can significantly reduce the course‑fee component compared with buying a US‑priced package directly.
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