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What the One Big Beautiful Bill Means for Relocation and HR Strategy
Navigating Changes for Corporate Relocation and HR
On July 4, 2025, the One Big Beautiful Bill (OBBB) was signed into law, marking the most comprehensive overhaul of the U.S. tax code since 2017. While national attention has largely centered on tax relief and defense funding, the bill also introduces significant implications for corporate relocation, global mobility programs, and HR policy planning.
What HR & Global Mobility Professionals Should Know
Permanent TCJA Provisions
The bill permanently extends key elements of the 2017 Tax Cuts and Jobs Act (TCJA), eliminating the need for future renewals. This includes lower individual tax rates, the increased standard deduction, and the qualified business income deduction for pass-through entities.
What it means: Greater long-term clarity for employers with a reduced corporate tax rate, and relocating employees, especially in modeling tax exposure and assignment compensation planning.
SALT Deduction Cap Raised
The State and Local Tax (SALT) deduction cap will increase from $10,000 to $40,000 starting now through 2029. The increased cap allows taxpayers to deduct up to $40,000 in state and local taxes on their federal returns, offering relief for high earners in states with steep income or property taxes.
What it Means: For employees relocating to high-tax states such as New York, California, and New Jersey, this can result in significantly reduced tax burdens. This change may make previously cost-prohibitive destinations more financially viable and attractive for talent mobility.
Moving Expense Deduction Partially Restored for Government Moves
The moving-expense deduction remains unavailable to most private-sector employees, the bill expands eligibility to U.S. government employees, including those in the intelligence community. This reverses part of the 2017 TCJA limits that had previously restricted the benefit to active-duty military personnel.
What it means: While the impact on most corporate moves is minimal, many had hoped this provision of the TCJA would expire. It is worth noting the expanded eligibility for government clients or dual-career households with federal employees.
Business Tax Incentives Could Shift Location Strategy
With permanent full expense of capital expenditures and other business-related tax benefits in place, some companies may reconsider where they invest, expand, or hire. These provisions are designed to stimulate long-term domestic investment by making it financially attractive for companies to expand operations within the U.S. Industries such as technology, manufacturing, and logistics may be especially influenced by these changes.
What it means: As companies reassess their relocation strategies, talent deployment patterns could shift. HR and mobility teams must remain closely aligned with business development and tax functions to proactively anticipate and adapt to these changes.
529 Plan Expansion Supports Mobility Specific Credentials
The 529 education savings plans will now cover postsecondary credentials, including professional certifications like CRP ® and GMS-T®. This change broadens how education savings can be used, making it easier for employees to pursue industry-recognized credentials without out-of-pocket costs. It also opens the door for employers to encourage professional development.
What it means: This provides employers with new tools to support career development for relocating employees and mobility teams, fostering enhanced retention and professional growth.
Immigration & Global Mobility Impacts
Changes to U.S. immigration processes, including enhanced screening protocols for unaccompanied minors and new fees for various visa and immigration applications. These measures are part of a broader push for tighter enforcement and increased funding for border and visa oversight, which could result in longer processing times and higher costs for foreign nationals and the companies that support them.
What it means: Companies relocating foreign talent or supporting cross-border assignments should prepare for added compliance steps and budget for potential increases of immigration-related fees.
In Closing
While the One Big Beautiful Bill does not fully restore all moving-expense benefits, it undeniably delivers meaningful cost relief through expanded SALT deductions and increased moving-expense eligibility for U.S. government employees. When combined with significant corporate tax enhancements and potential new fees, these changes necessitate a comprehensive review and update to existing relocation policies, costing models, and internal/external communications.
At NEI, we’re actively monitoring the implications of this new law for our clients and their relocating employees. From tax updates to housing market trends, we’ll continue to keep you informed—and help ensure your mobility program remains compliant, competitive, and aligned with today’s evolving landscape.
Stay tuned for a deeper dive into the legislation in future Mobility Trends & Hot Topics.
What the One Big Beautiful Bill Means for Relocation and HR Strategy
Navigating Changes for Corporate Relocation and HR
On July 4, 2025, the One Big Beautiful Bill (OBBB) was signed into law, marking the most comprehensive overhaul of the U.S. tax code since 2017. While national attention has largely centered on tax relief and defense funding, the bill also introduces significant implications for corporate relocation, global mobility programs, and HR policy planning.
What HR & Global Mobility Professionals Should Know
Permanent TCJA Provisions
The bill permanently extends key elements of the 2017 Tax Cuts and Jobs Act (TCJA), eliminating the need for future renewals. This includes lower individual tax rates, the increased standard deduction, and the qualified business income deduction for pass-through entities.
What it means: Greater long-term clarity for employers with a reduced corporate tax rate, and relocating employees, especially in modeling tax exposure and assignment compensation planning.
SALT Deduction Cap Raised
The State and Local Tax (SALT) deduction cap will increase from $10,000 to $40,000 starting now through 2029. The increased cap allows taxpayers to deduct up to $40,000 in state and local taxes on their federal returns, offering relief for high earners in states with steep income or property taxes.
What it Means: For employees relocating to high-tax states such as New York, California, and New Jersey, this can result in significantly reduced tax burdens. This change may make previously cost-prohibitive destinations more financially viable and attractive for talent mobility.
Moving Expense Deduction Partially Restored for Government Moves
The moving-expense deduction remains unavailable to most private-sector employees, the bill expands eligibility to U.S. government employees, including those in the intelligence community. This reverses part of the 2017 TCJA limits that had previously restricted the benefit to active-duty military personnel.
What it means: While the impact on most corporate moves is minimal, many had hoped this provision of the TCJA would expire. It is worth noting the expanded eligibility for government clients or dual-career households with federal employees.
Business Tax Incentives Could Shift Location Strategy
With permanent full expense of capital expenditures and other business-related tax benefits in place, some companies may reconsider where they invest, expand, or hire. These provisions are designed to stimulate long-term domestic investment by making it financially attractive for companies to expand operations within the U.S. Industries such as technology, manufacturing, and logistics may be especially influenced by these changes.
What it means: As companies reassess their relocation strategies, talent deployment patterns could shift. HR and mobility teams must remain closely aligned with business development and tax functions to proactively anticipate and adapt to these changes.
529 Plan Expansion Supports Mobility Specific Credentials
The 529 education savings plans will now cover postsecondary credentials, including professional certifications like CRP ® and GMS-T®. This change broadens how education savings can be used, making it easier for employees to pursue industry-recognized credentials without out-of-pocket costs. It also opens the door for employers to encourage professional development.
What it means: This provides employers with new tools to support career development for relocating employees and mobility teams, fostering enhanced retention and professional growth.
Immigration & Global Mobility Impacts
Changes to U.S. immigration processes, including enhanced screening protocols for unaccompanied minors and new fees for various visa and immigration applications. These measures are part of a broader push for tighter enforcement and increased funding for border and visa oversight, which could result in longer processing times and higher costs for foreign nationals and the companies that support them.
What it means: Companies relocating foreign talent or supporting cross-border assignments should prepare for added compliance steps and budget for potential increases of immigration-related fees.
In Closing
While the One Big Beautiful Bill does not fully restore all moving-expense benefits, it undeniably delivers meaningful cost relief through expanded SALT deductions and increased moving-expense eligibility for U.S. government employees. When combined with significant corporate tax enhancements and potential new fees, these changes necessitate a comprehensive review and update to existing relocation policies, costing models, and internal/external communications.
At NEI, we’re actively monitoring the implications of this new law for our clients and their relocating employees. From tax updates to housing market trends, we’ll continue to keep you informed—and help ensure your mobility program remains compliant, competitive, and aligned with today’s evolving landscape.
Stay tuned for a deeper dive into the legislation in future Mobility Trends & Hot Topics.
