The One Big Beautiful Bill (H.R. 1), signed into law on July 4, 2025, delivers meaningful relief for families, workers, and retirees across Colorado. While debate over national politics often dominates the headlines, it’s worth looking closely at what this bill actually does.
First, the law makes permanent the 2017 individual tax rate reductions, sparing Colorado households from a steep tax hike that was set to arrive in 2026. It also expands the federal State and Local Tax (SALT) deduction cap from $10,000 to $40,000 per household, indexed to inflation. For many Colorado homeowners, that means thousands of dollars in additional deductions at tax time.
For workers, the bill creates new targeted relief. Tipped employees may deduct up to $25,000 in tip income through 2028, and hourly workers can claim a new deduction on overtime pay, up to $12,500 for individuals or $25,000 for couples. These changes put more money back in the pockets of service-sector employees and hardworking families.
Seniors also benefit. The bill provides a new temporary deduction of $6,000 for individuals and $12,000 for couples below certain income thresholds, helping many retirees shield Social Security and other income from taxation. Families will see the Child Tax Credit increased to $2,200 per child, with future adjustments tied to inflation.
Further, the bill encourages savings through new “Trump Accounts” for children born between 2025–2028, seeding $1,000 at birth with the option for families and employers to contribute more.
Taken together, these provisions provide real, measurable benefits for Coloradans at every stage of life.
Kelly Hegarty
Durango
