The OBBB Act- How it is Likely to Impact Lenders and Borrowers

The OBBBA contains hundreds of provisions—many of them related to taxes.  For example, it permanently extends the individual tax rates Trump signed into law in 2017, which were set to expire at the end of 2025. It raises the cap on the state and local tax deduction to $40,000 for taxpayers making less than $500,000, with the cap reverting to $10,000 after five years. OBBB includes several tax deductions for tips, overtime pay, auto loans, and creates Trump Accounts, allowing parents to create tax-deferred accounts for the benefit of their children, all set to expire in 2028. It includes a permanent $200 increase in the child tax credit, a 1% tax on remittances, and a tax hike on investment income from college endowments.   However, It phases out some clean energy tax credits that were included in the Biden-era Inflation Reduction Act, and promotes fossil fuels over renewable energy. It increases a tax credit for advanced semiconductor manufacturing and repeals a tax on silencers. It raises the debt ceiling by $5 trillion. It cuts  Medicaid spending by 12% and expands work requirements for SNAP (food stamp) benefits) recipients and makes states responsible for some of the SNAP costs.  OBBB includes $150 billion in new defense spending and another $150 billion for border enforcement and deportations. The law increases Immigration and Customs Enforcement (ICE) funding from $10 billion to more than $100 billion by 2029.

So what are the pros and cons of the key provisions?  Are there ramifications that need to be identified, evaluated, and resolved?

Topics covered in this session

• Description of OBBB Act
• Legislative process from introduction to enactment to implementation
• Contents of OBBB Act—explanation, likely impact

• Individual income taxes
• Business Income Taxes
• Tax-exempt Organizations
• Educational Institutions
• Medicaid Cuts and Potential Cuts
• Trump accounts and contribution pilot program
• Limits on green industrial policy
• Provisions on agriculture
• Leasing and sale of public lands
• Debt Ceiling
• Medicare Drug Negotiation
• Military Defense
• Border Security
• Supplemental Nutrition Assistance Program (SNAP)
• Student Loans
• Employee Benefits
• Remittance Tax
• Estate tax, gift tax, and generation-skipping transfer tax
• Boost in air traffic control funding
• New $10 billion for NASA
• FCC and NTIA to identify and auction 600 MHz of the electromagnetic spectrum between 1.3 and 10 GHz by 2034
• Repeal of de minimis entry privilege, which allowed shipments under $800 to enter the U.S. tariff-free
• Halving of funding for the Consumer Financial Protection Bureau
• Ramifications
• Disputes on cost of OBBB
• Crowding Out Effect on debt markets
• Changes to political control of Congress and Presidency

Who Should Attend

• Credit Analysts
• Credit Managers
• Loan review officers
• Work-out officers
• Commercial lenders
• Credit Risk Managers
• Chief Credit Officers
• Senior Lenders
• Senior Lending Officer
• Bank Director
• Chief Executive Officer
• President
• Board Chairman

*This program does NOT qualify, nor meet the National Standard for NASBA accreditation.