KEY DATE: OBBBA provisions become testable in REG and TCP from July 1, 2026. FAR, AUD, BAR, and ISC are not affected.

The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025. It is the largest US tax legislation since the Tax Cuts and Jobs Act (TCJA) of 2017. For CPA candidates, the implications are specific and time-sensitive. Only two exam sections are affected: REG and TCP. No other sections change. And OBBBA content does not appear in either section until July 1, 2026.

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If you are sitting before that date, nothing changes for you. If you are sitting on or after July 1, you need to know exactly what is now testable and what that means for your study plan.

What Is the One Big Beautiful Bill Act?

The OBBBA (formally H.R. 1, Public Law 119-21) was signed by President Trump on July 4, 2025. According to the IRS, it permanently extends most individual and business tax provisions of the 2017 TCJA that were set to expire after 2025. It also introduces several new provisions.

The core effect of the OBBBA for tax purposes:

• TCJA individual income tax rates are now permanent. The scheduled 2025 sunset is eliminated.
• New deductions for tip income and overtime pay are introduced on a temporary basis (2025-2028).
• The SALT deduction cap is temporarily raised from $10,000 to $40,000 for 2025-2029.
• 100% bonus depreciation is restored permanently for business assets.
• Section 179 expensing limit is raised to $2.5 million.
• Child Tax Credit is increased to $2,200 and made permanent.

The OBBBA is broad legislation with hundreds of provisions. On the CPA exam, only the provisions that fall within the existing REG and TCP blueprints are testable. Not every OBBBA provision appears on the exam.

The July 1, 2026 Cutoff: How the AICPA Phased This In

The AICPA Board of Examiners approved a phased approach, confirmed by UWorld's official guidance. The rules are straightforward.

• Provisions with effective dates in 2024 or 2025 become testable on July 1, 2026.
• Old TCJA provisions that were set to expire in 2025 remain testable until June 30, 2026.
• Provisions with effective dates in 2026 or later follow the standard AICPA rule: testable in the calendar quarter beginning six months after the effective date.

This phased approach gave candidates and educators lead time. The AICPA did not immediately swap in the new law. Instead, they drew a clean line: pre-July 1 tests on the old law, post-July 1 tests on the new law.

What Changes on July 1: Pre-OBBBA vs Post-OBBBA

What OBBBA Means for REG Candidates

REG covers federal taxation of individuals, corporations, partnerships, and estates. It also covers business law and ethics. OBBBA hits REG on the individual and business tax sides.

The most important conceptual shift for REG: stop preparing for TCJA sunset scenarios. Under pre-OBBBA law, candidates had to understand what would happen if TCJA provisions expired in 2025. That calculation is now irrelevant. The rates are permanent. This actually simplifies some REG content.

New content adds some complexity. The tips and overtime deductions have specific eligibility rules, phase-out thresholds, and payroll tax nuances. The SALT cap phase-out for incomes above $500,000 is a new mechanics question. These are not difficult provisions, but they need to be learned specifically.

Bonus depreciation returning to 100% also matters for REG. Pre-OBBBA, candidates studied the phase-down schedule. From July 1 onwards, it is simply 100% for qualifying assets acquired after January 19, 2025.

What OBBBA Means for TCP Candidates

TCP goes deeper than REG. REG tests compliance mechanics. TCP tests planning judgment. OBBBA changes both angles, but TCP candidates need to think about the strategic implications of each provision, not just the rules.

Key TCP angles on OBBBA provisions:

• Permanent TCJA brackets eliminate sunset planning. Advisors no longer need to counsel clients on accelerating or deferring income based on impending rate changes. But rate-differential strategies between entity types still apply.
• Restored 100% bonus depreciation creates acquisition timing and entity selection questions. When should a client buy an asset? How does immediate expensing interact with basis and recapture? These are TCP-style questions.
• The SALT cap phase-out at $500,000 AGI is a planning issue for high-income clients. Pass-through entity (PTE) tax workarounds become more complex with a higher federal SALT cap.
• Trump Accounts (new IRC vehicle for children born 2025-2028) are a new estate and personal financial planning topic. Contributions, the $1,000 federal bonus, and the capital gains treatment on qualifying withdrawals are all testable planning dimensions on TCP.

The practical advice for TCP: do not treat OBBBA as just 'harder REG content.' The exam will ask what you would recommend to a client, not just how to calculate their tax. Keep the advisory framing in mind as you study each new provision.

Complete OBBBA Testability Reference: REG and TCP

How to Adjust Your Study Plan Right Now

Your action depends entirely on your exam date.

If you are sitting for REG or TCP before June 30, 2026:

• Study pre-OBBBA law. OBBBA content is not testable.
• Prepare for TCJA sunset scenarios, they are still in scope until June 30.
• Do not split your attention. Focus on passing with the current blueprint.

If you are sitting for REG or TCP on or after July 1, 2026:

• Study the OBBBA provisions in the table above. Your study materials must cover the updated content.
• Remove TCJA sunset scenarios from your preparation. They are no longer testable.
• For TCP specifically, learn the planning angle of each provision, not just the compliance rules.

One important strategic point on sequencing: take REG and TCP on the same side of the July 1 cutoff. Taking REG before July 1 without OBBBA, then TCP after July 1 with OBBBA, creates unnecessary complexity. You would effectively study two different bodies of law for the two most closely related exam sections. If you cannot sit for both before the deadline, commit fully to the post-July 1 version and study both sections together under OBBBA law.

For Finance Professionals Considering the CPA: What This Means

If you are evaluating the CPA as a credential and have not started yet, the OBBBA update is relevant context, not a deterrent.

The law change does not make the exam harder in net terms. Several OBBBA provisions actually simplify REG content by eliminating dual-scenario planning questions around TCJA expiry. The new provisions (tips, overtime, Trump Accounts) add specific topics, but they are narrowly defined and learnable.

If you are considering the CPA for roles in MNCs, Big 4 GCCs, or any firm that handles US tax compliance, starting sooner has value. Your study materials and program should automatically reflect the July 1 transition, so you do not have to manage the switchover yourself.

Board360.ai's CPA program is powered by UWorld, which has confirmed it is updating course materials to reflect OBBBA changes for the July 1, 2026 cutoff. That means your preparation will align with the correct testing window regardless of when you start.

Frequently Asked Questions

Does OBBBA affect all CPA exam sections?

No. Only REG and TCP are affected. FAR, AUD, BAR, and ISC are not impacted by OBBBA. Those sections have their own smaller Blueprint updates for 2026 (quality management standards in AUD, GASB updates in BAR), but these are minor in scope compared to the OBBBA changes.

If I take REG before July 1, 2026, do I need to study OBBBA?

No. OBBBA provisions are not testable in any section until July 1, 2026. If you sit for REG any time through June 30, the exam will test pre-OBBBA law, including TCJA sunset scenarios. You do not need to learn the new provisions for that sitting.

My REG score is valid but I have not taken TCP yet. Does this affect me?

Potentially, yes. If your REG sitting was before July 1, 2026, you studied pre-OBBBA law. If your TCP sitting is after July 1, OBBBA content will be tested. The two most closely related sections will have been studied under different bodies of law. This is manageable, but you will need to study the OBBBA provisions before sitting TCP. Your review provider's materials should flag this clearly.

Is OBBBA content harder than current REG content?

In net terms, not necessarily. OBBBA removes some complexity by making TCJA rates permanent and eliminating sunset scenarios. It adds new provisions (tips, overtime, SALT phase-out, Trump Accounts), but these are narrow and specifically defined. Candidates who study the updated blueprint thoroughly are not at a disadvantage compared to those who studied the pre-OBBBA version.

Where is the AICPA's official guidance on OBBBA exam dates?

The AICPA and CIMA published an official document on the effective dates of OBBBA tax provisions and their exam testing timeline. UWorld's 2026 CPA exam changes page references this document directly and summarizes the testable provisions for REG and TCP.

Study for the CPA Exam with Updated Content

Board360.ai's US CPA program is powered by UWorld, which is actively updating its content to reflect OBBBA changes ahead of the July 1, 2026 cutoff. The program covers all four exam sections including REG and TCP, with a 94% first-attempt pass rate. A free demo is available. Explore the CPA program at Board360.ai and start your preparation with materials that will reflect the correct law for your exam date.