EA Exam 2025 Tax Law Changes: One Big Beautiful Bill Act Complete Guide
EA Exam 2025 Tax Law Changes
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces sweeping tax changes that will appear on the EA exam starting May 2026. Here is every provision EA candidates must know, when it becomes testable, and how to prepare.
Key Takeaways
- OBBBA tax law changes become testable on the EA exam from May 1, 2026 (not before)
- Current testing window (May 2025 – Feb 2026) covers only 2024 tax law through Dec 31, 2024
- Major individual changes: SALT cap raised to $40,000, new tip/overtime deductions, Child Tax Credit up to $2,200
- Business changes: Section 179 limit jumps to $2,500,000 with $31,300 SUV cap
- EV and residential energy credits terminated after Sept/Dec 2025
- EA exam moves from Prometric to PSI Services from March 2026 — syllabus and format unchanged
Table of Contents
- When Do OBBBA Changes Appear on the EA Exam?
- EA Exam Testing Windows: 2024 Law vs 2025 Law
- Individual Tax Changes EA Candidates Must Know
- Business Tax Changes Under OBBBA
- Credits Eliminated or Reduced
- How to Prepare for the 2025 Tax Law on the EA Exam
- EA Exam Format: Prometric to PSI Transition
- Frequently Asked Questions
When Do OBBBA Changes Appear on the EA Exam?
The One Big Beautiful Bill Act provisions will first be testable on the Enrolled Agent Special Enrollment Examination (SEE) starting May 1, 2026. The IRS updates the EA exam annually during the March–April blackout period to reflect tax law as of December 31 of the prior year. Since OBBBA was signed July 4, 2025, it falls within the 2025 tax year and becomes examinable in the May 2026–February 2027 testing cycle.
If you are sitting for the EA exam before February 28, 2026, you will not be tested on any OBBBA provisions. The current window tests only on tax law through December 31, 2024. This is confirmed by the official IRS exam bulletin and multiple EA review providers.
Pro Tip: If you are close to finishing your EA exam parts, consider completing them before February 28, 2026, so you do not need to study an entirely new body of tax law changes under OBBBA.
For a full overview of the exam structure and scheduling, see our Enrolled Agent Exam 2026: SEE Guide, Fees & PSI Tips.
EA Exam Testing Windows: 2024 Law vs 2025 Law
Understanding which tax law applies to your EA exam attempt is critical. The IRS uses a fixed annual cycle: the exam tests on law as of December 31 of the prior calendar year, with a two-month blackout for content updates each spring.
| Testing Window | Tax Law Tested | OBBBA Covered? | Exam Vendor |
|---|---|---|---|
| May 1, 2025 – Feb 28, 2026 | Through Dec 31, 2024 | No | Prometric |
| March–April 2026 | Blackout period | N/A | No testing |
| May 1, 2026 – Feb 28, 2027 | Through Dec 31, 2025 | Yes | PSI Services |
Important: The IRS will not test retroactive legislation passed mid-year. Only provisions in effect as of December 31, 2025 will appear on the May 2026 exam cycle.
If you are planning your exam timeline, our Enrolled Agent Study Plan Strategies guide can help you sequence your parts effectively.
Individual Tax Changes EA Candidates Must Know
The OBBBA introduces eight major individual tax provisions that Part 1 (Individuals) candidates need to master for the May 2026 testing cycle. These range from increased deductions to entirely new tax benefits for specific income types.
| Provision | Details | Tax Years |
|---|---|---|
| SALT Deduction Cap | Raised from $10,000 to $40,000 ($20,000 MFS). Phaseout above $500,000 MAGI. | 2025–2029 |
| Standard Deduction | $15,750 (Single), $23,625 (HOH), $31,500 (MFJ) | 2025 |
| Tip Income Deduction | Up to $25,000 deduction for qualified tips. Phaseout above $150K/$300K MAGI. | 2025–2028 |
| Overtime Pay Deduction | Deduction for overtime premium. Cap: $12,500 (Single) / $25,000 (MFJ). Same phaseout thresholds. | 2025–2028 |
| Child Tax Credit | Increased from $2,000 to $2,200 per qualifying child | 2025 |
| Senior Citizen Deduction | New $6,000 deduction for age 65+ ($12,000 MFJ). Phaseout above $75K/$150K MAGI. | 2025 |
| Auto Loan Interest Deduction | Up to $10,000 for US-manufactured vehicles. MAGI phaseout applies. | 2025–2028 |
| Trump Savings Accounts | $1,000 federal deposit for children born 2025–2028. Reported on Form 4547. | 2025–2028 |
For related individual tax topics tested on the EA exam, see our guides on IRA Early Withdrawal Penalty Exceptions and Kiddie Tax Rules 2025.
Business Tax Changes Under OBBBA
Part 2 (Businesses) of the EA exam will also see significant updates from OBBBA. The most notable change is the increase to the Section 179 expensing limit, along with termination of several business energy credits.
Section 179 Expensing — 2025 Tax Year
Maximum deduction: $2,500,000
Phase-out threshold: begins when asset purchases exceed the annual limit
SUV limitation: $31,300 maximum for vehicles over 6,000 lbs GVWR
Business candidates should also note that 100% bonus depreciation has been extended, and the QBI (Qualified Business Income) deduction includes a new minimum deduction provision under OBBBA. The 1099 reporting threshold and ERC (Employee Retention Credit) claim limitations have also been updated.
For comprehensive EA exam preparation covering business topics, explore our Enrolled Agent Course Guide 2026: Complete Roadmap.
Credits Eliminated or Reduced Under OBBBA
Several energy-related credits that were previously available have been terminated or significantly curtailed by OBBBA. EA candidates must know the exact termination dates, as exam questions may test on transition rules and phase-out timing.
- Clean Vehicle (EV) Tax Credit: Terminated for vehicles placed in service after September 30, 2025
- Residential Clean Energy Credit: Terminated for property placed in service after December 31, 2025
- Energy Efficient Home Improvement Credit: Terminated after 2025
- Commercial Clean Vehicle Credit: Terminated for vehicles acquired after September 30, 2025
- Energy Efficient Commercial Building Deduction (179D): Terminated for buildings where construction has not begun by June 30, 2026
Important: Even though these credits are terminated going forward, the EA exam may still test on the transition rules — for example, whether a vehicle placed in service on September 29, 2025 still qualifies versus one on October 1, 2025.
How to Prepare for the 2025 Tax Law on the EA Exam
Preparing for the new OBBBA provisions requires a structured approach. Candidates sitting from May 2026 onward must study both existing tax law and the new changes simultaneously. Here is a step-by-step preparation strategy.
- Wait for updated study materials: Ensure your EA review course (such as Surgent) has been updated for December 31, 2025 tax law before starting
- Focus on the delta: Create a separate study sheet listing only OBBBA changes versus prior law
- Master the numbers: Memorise key thresholds — $40,000 SALT, $25,000 tips, $2,200 CTC, $2,500,000 Section 179
- Know the sunset dates: Many OBBBA provisions expire in 2028 or 2029 — the exam may test whether a provision applies to a given tax year
- Practice with updated MCQs: Use adaptive learning platforms that incorporate the new law into their question banks
- Review IRS.gov OBBBA page: The IRS has published an official provisions summary at irs.gov/newsroom/one-big-beautiful-bill-provisions
Eduyush offers Surgent EA Review courses which will be fully updated for the 2025 tax law changes before the May 2026 testing window opens. Surgent uses adaptive learning technology (A.S.A.P. Technology) to focus your study time on weak areas, including new OBBBA provisions.
Also read: Self-Study for EA Exam with AI: Surgent + ChatGPT Guide and Best Enrolled Agent Course 2026 for detailed course comparisons.
Pro Tip: Use the Surgent Discount Code 2026 to save up to 60% on your EA review course through Eduyush.
EA Exam Format: Prometric to PSI Transition in 2026
Alongside the tax law content changes, the EA exam is undergoing a major administrative shift. From March 1, 2026, the IRS has contracted PSI Services LLC to replace Prometric as the exam delivery vendor. The exam content, syllabus, passing score, and three-part structure remain completely unchanged.
| Component | Details |
|---|---|
| Exam Parts | 3 parts: Individuals, Businesses, Representation |
| Questions per Part | 100 MCQs (85 scored + 15 experimental) |
| Duration per Part | 3.5 hours |
| Passing Score | Scaled score of 105 |
| Exam Vendor (from May 2026) | PSI Services LLC |
| Testing Window | May 1 – Feb 28 annually (March–April blackout) |
For full details on the PSI transition, read our dedicated guide: EA Exam Moving to PSI in 2026: What Changes.
Additional resources for exam preparation: Enrolled Agent Exam Pass Rate 2026 | Is the EA Exam Hard? | Enrolled Agent vs CPA | Enrolled Agent Registration 2026
Next Steps
Ready to start your EA exam journey with the latest 2025 tax law updates? Explore our Surgent Enrolled Agent Review Course — fully updated for the May 2026 testing cycle with adaptive learning technology and unlimited practice questions.
About the Author
Vicky Sarin — Founder, Eduyush
Vicky Sarin is a Chartered Accountant and the founder of Eduyush, a global platform helping professionals prepare for US accounting certifications including the EA, CPA, CMA, and CIA exams. With over a decade of experience in finance education, Vicky has helped thousands of candidates worldwide achieve their certification goals through curated study materials and expert guidance.
Frequently Asked Questions
Q: When will the One Big Beautiful Bill Act changes appear on the EA exam?
OBBBA provisions become testable starting May 1, 2026, when the new testing cycle begins covering tax law through December 31, 2025. The current cycle (through February 2026) only tests on 2024 tax law.
Q: What is the new SALT deduction cap for the EA exam?
Under OBBBA, the SALT deduction cap increased from $10,000 to $40,000 for tax years 2025–2029. Married filing separately filers have a $20,000 cap. A phaseout applies for taxpayers with MAGI above $500,000.
Q: Is the tip income deduction testable on the current EA exam?
No. The $25,000 tip income deduction was created by OBBBA for tax years 2025–2028. It will only appear on exams taken from May 1, 2026 onward, not on the current testing window.
Q: Will Surgent EA review courses be updated for the 2025 tax law?
Yes. Surgent updates all EA review materials before each new testing cycle. The Surgent EA course available through Eduyush will include all OBBBA provisions before the May 2026 window opens.
Q: What is the new Section 179 limit for 2025?
OBBBA raised the Section 179 expensing limit to $2,500,000 for tax years beginning in 2025. The SUV limitation is $31,300. This will be tested on Part 2 (Businesses) of the EA exam from May 2026.
Q: Are EV tax credits still available for the EA exam?
The Clean Vehicle (EV) credit is terminated for vehicles placed in service after September 30, 2025. EA candidates from May 2026 must know this termination date and the transition rules for vehicles acquired before the cutoff.
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Questions? Answers.
How do I become an Enrolled Agent?
To become an Enrolled Agent, you must:
- Pass the Special Enrollment Examination (SEE), which is a three-part exam covering:
- Alternatively, if you have experience working for the IRS (at least five years in a relevant tax position), you may qualify without the exam.
- Apply for enrollment by submitting Form 23, “Application for Enrollment to Practice Before the IRS,” and undergo a background check to ensure you comply with tax laws.
What is the Special Enrollment Examination (SEE)?
The SEE is a three-part exam that tests your knowledge of tax laws and your ability to represent taxpayers before the IRS. Each part of the exam focuses on different aspects of U.S. tax law:
- Part 1: Individual Taxation
- Part 2: Business Taxation
- Part 3: Representation, Practices, and Procedures
You must pass all three parts within a two-year period. The exam is administered by Prometric and is available year-round.
How do I renew my Enrolled Agent status?
To renew your EA status, you need to:
- Complete Form 8554, “Application for Renewal of Enrollment to Practice Before the IRS,” and submit it before the expiration of your current enrollment cycle.
- Confirm you have met your CPE requirements for the three-year period.
- Pay the renewal fee (currently $140 as of 2024).
Your renewal period is based on the last digit of your Social Security Number:
- 0, 1, 2, 3: Renew by January 31 of years divisible by 3 (e.g., 2026, 2029).
- 4, 5, 6: Renew by January 31 of the year following those divisible by 3.
- 7, 8, 9: Renew by January 31 two years after the year divisible by 3.
Can I lose my Enrolled Agent status?
Yes, an EA can lose their status for various reasons, including:
- Failure to meet CPE requirements.
- Failure to renew your enrollment by submitting Form 8554.
- Unethical behavior or violations of IRS regulations (e.g., tax fraud, negligence).
If you lose your status, you will need to reapply and, in some cases, retake the SEE to regain your credentials.
How can I track my CPE hours?
It’s important to track your CPE hours to ensure you meet the requirements. Many IRS-approved providersautomatically track your hours and issue certificates for each course. You should:
- Keep a record of completion certificates from each CPE course.
- Use a spreadsheet or online tracking tool to log your hours and ensure you meet the yearly 16-hour minimum.
Some CPE providers offer dashboards that allow you to track your completed courses and hours in real time.
What is the difference between an EA and a CPA?
While both EAs and CPAs can represent clients before the IRS, there are key differences:
- EAs specialize in tax and have unlimited practice rights to represent taxpayers before the IRS in tax matters.
- CPAs can offer a broader range of services, including auditing, accounting, and financial planning. However, their ability to represent clients before the IRS in tax matters is typically limited to those for whom they have prepared tax returns or provided other services.
EAs are generally seen as tax experts, while CPAs have a more generalized accounting background.
What is Form 23, and when do I need to file it?
Form 23 is the “Application for Enrollment to Practice Before the IRS.” You file this form:
- After you pass all three parts of the SEE, or
- If you qualify based on prior IRS work experience (at least five years in a relevant position).
Filing Form 23 is the final step in becoming an Enrolled Agent. You must also pass a background check and pay the initial enrollment fee.
How long does the EA enrollment process take?
- After passing the SEE, you must submit Form 23.
- The IRS will conduct a background check to ensure you have complied with U.S. tax laws.
- The approval process typically takes 60-90 days, depending on the completeness of your application and the IRS's review workload.
Where can i read detailed guidelines for specific areas?
We have addressed most of the EA questions in our blogs. Refer to these blogs
Resources to pass the EA Exams
Here are all the relevant resources you can use to pass the exams
- Enrolled Agent CPE Requirements: Complete Guide for EAs
- Enrolled agent diagnostic report: How to use it
- Enrolled Agent Exam Centers in India: Complete Guide
- Enrolled Agent Exam Cost: A Complete Breakdown
- Enrolled agent exam retakes: Study strategies
- Enrolled Agent Exam Sample Questions: Part 1 Individuals
- Enrolled Agent Exam Scores: Everything You Need to Know
- Enrolled agent exam time management
- Enrolled Agent Exam: Your Complete Guide to Success
- Enrolled Agent Renewal: Complete Guide to Renew Your EA Status
- Enrolled Agent Salary in India: A Complete Overview
- Enrolled Agent Study Plan Strategies
- Enrolled Agent Syllabus: Complete Breakdown for 2024
- Enrolled agent test preparation
- Enrolled Agent: Your Guide to Becoming an EA
- How to Fill Form 8554 for Enrolled Agent Renewal
- How to get a PTIN: Step by Step guide
- PTIN Renewal Deadlines: What Happens If You Miss the Deadline?
- Enrolled agent course
- Self Study Enrolled agent Using AI
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