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How OBBB Could Reshape Corporate Relocation
On July 4, 2025, the One Big Beautiful Bill (OBBB) was signed into law, marking the most significant changes to the U.S. tax code since the Tax Cuts and Jobs Act (TCJA). Lawmakers say that the act is driven by a push to modernize the tax system, stimulate economic growth, and reassert U.S. competitiveness on the global stage. The bill responds to shifting labor dynamics, geopolitical pressures, and fiscal demands.
While much of the attention has focused on individual tax relief and increased defense funding, the legislation also carries substantial implications for relocation management companies, global mobility programs, and HR policy planning.
For companies navigating a complex mobility landscape, OBBB’s provisions present both new challenges and strategic opportunities. From tax reform and support to immigration compliance and state-level cost-of-living impacts, all branches of global mobility will feel the ripple effects of this legislation.
This article unpacks the bill’s core elements most relevant to corporate relocation and translates the information we’ve learned into actionable insight. If you manage domestic transfers, oversee global assignments, or create the policies that support relocating employees, understanding these changes is critical to keeping your program competitive and strategically aligned.
Permanent TCJA Provisions
The One Big Beautiful Bill (OBBB) permanently extends the main components of the 2017 TCJA, providing long-term clarity on taxing relocation benefits. One unchanged provision eliminates the individual tax deduction for unreimbursed moving expenses related to a job change, except for certain government employees. This means that employer-provided moving benefits are still taxable income to the employee.
While this may disappoint those hoping for a complete restoration of the deduction, there is one positive takeaway. Employers can continue to deduct relocation expenses as a business cost. This permanent provision enables companies to maintain relocation budgets while offering tax assistance to employees through gross-up payments that help offset their individual tax burden.
The Impact on Mobility Programs
The permanent provision provides insight into companies relocating employees, allowing them to reassess and adjust their relocation policies, especially with more comprehensive support, such as gross-up payments, to limit tax exposure to the employee.
SALT Deduction Cap Raised
One of the most immediate and impactful provisions of the One Big Beautiful Bill is the increase in the State and Local Tax (SALT) deduction cap. Previously capped at ten thousand dollars, the new law raises the limit to forty thousand dollars per household through 2029. This change allows taxpayers to deduct significantly more in state and local taxes on their federal returns, providing meaningful relief for employees relocating to states with high income or property taxes.
The Impact on Mobility Programs
For companies moving talent into high-cost locations such as California, New York, New Jersey, or Illinois, the expanded SALT deduction can help ease the financial burden on employees and make previously cost-sensitive destinations more attractive. This shift may also open doors for companies that previously avoided expansion into high-tax regions due to relocation cost concerns. With the SALT deduction cap now substantially higher, the financial landscape of domestic mobility has changed.
Tax Incentives Reshaping the Map for Talent Strategy
Among the most consequential changes in the One Big Beautiful Bill is the permanent extension of business tax incentives that encourage domestic investment. Companies can now continue to fully expense capital expenditures, such as buildings and equipment, a provision introduced initially in the 2017 tax law. Lawmakers designed the extension and related tax benefits to stimulate long-term growth by making it more financially attractive for businesses to expand operations within the United States.
As companies reevaluate where they invest, hire, or build, these tax incentives could shift the demand for talent across locations. Cost savings may influence certain industries such as technology manufacturing and logistics, especially as they expand into less developed areas and emerging markets.
The Impact on Mobility Programs
Mobility teams should be at the table early during expansion discussions. With relocation volume potentially following new capital investment patterns, having a clear talent deployment strategy aligned with tax-informed decisions will be critical to success.
529 Plan Expansion: Fueling Professional Growth Through Mobility
The One Big Beautiful Bill expands how 529 education savings plans are used, allowing funds to cover workforce development and professional credentials in addition to traditional college expenses. This includes certifications relevant to the mobility industry, such as the Certified Relocation Professional (CRP) and Global Mobility Specialist Talent (GMS-T) designations.
This change gives employees and employers greater flexibility to invest in ongoing career development without relying solely on out-of-pocket costs or company-sponsored tuition reimbursement.
The Impact on Mobility Programs
The ability to use 529 funds for certifications creates new opportunities for employers to encourage skill building within mobility and HR teams. It also supports relocating employees pursuing new roles, cross-training, or development goals as part of their move.
By aligning professional development with financial planning tools, companies can support career growth and retention, while building stronger internal mobility expertise.
Immigration Impacts: Preparing for Delays and Rising Costs
The OBBB introduces significant changes to the U.S. immigration policy, emphasizing stricter enforcement
Among the most notable changes are enhanced screening procedures for specific visa categories, new fees tied to immigration filings, and increased funding for visa processing infrastructure. While the long-term goal is to streamline operations and reduce backlogs, companies may experience temporary delays as new systems and staffing models are rolled out.
The Impact on Mobility Programs
Companies that rely on international talent should prepare for more complex planning and potentially higher costs when sponsoring employees or managing cross-border moves.
While some final details are still being clarified through follow-up regulations, immigration will remain a high priority in the evolving mobility landscape. Companies that act early to assess the impact of these changes will be better equipped to protect their global workforce strategy and ensure a positive relocation experience.
Conclusion: Navigating Change with Confidence and Strategy
The One Big Beautiful Bill marks a pivotal moment for corporate relocation and global mobility programs. By making key TCJA provisions permanent, increasing the SALT deduction cap, expanding tax incentives, and introducing immigration-related changes, this legislation reshapes the financial and operational landscape for relocating employees and their employers.
The path forward for HR and mobility professionals is clear: proactive adaptation is essential. This means revisiting relocation policies, aligning closely with finance and tax teams, and preparing for evolving immigration requirements. It also means leveraging new opportunities such as the expanded use of 529 plans for professional development to support talent retention and career growth.
NEI is committed to helping you navigate legislative changes as they occur with clarity and confidence. We are ready to assist our clients with tailored solutions that keep their mobility program compliant, competitive, and aligned with their business strategies.
How OBBB Could Reshape Corporate Relocation
On July 4, 2025, the One Big Beautiful Bill (OBBB) was signed into law, marking the most significant changes to the U.S. tax code since the Tax Cuts and Jobs Act (TCJA). Lawmakers say that the act is driven by a push to modernize the tax system, stimulate economic growth, and reassert U.S. competitiveness on the global stage. The bill responds to shifting labor dynamics, geopolitical pressures, and fiscal demands.
While much of the attention has focused on individual tax relief and increased defense funding, the legislation also carries substantial implications for relocation management companies, global mobility programs, and HR policy planning.
For companies navigating a complex mobility landscape, OBBB’s provisions present both new challenges and strategic opportunities. From tax reform and support to immigration compliance and state-level cost-of-living impacts, all branches of global mobility will feel the ripple effects of this legislation.
This article unpacks the bill’s core elements most relevant to corporate relocation and translates the information we’ve learned into actionable insight. If you manage domestic transfers, oversee global assignments, or create the policies that support relocating employees, understanding these changes is critical to keeping your program competitive and strategically aligned.
Permanent TCJA Provisions
The One Big Beautiful Bill (OBBB) permanently extends the main components of the 2017 TCJA, providing long-term clarity on taxing relocation benefits. One unchanged provision eliminates the individual tax deduction for unreimbursed moving expenses related to a job change, except for certain government employees. This means that employer-provided moving benefits are still taxable income to the employee.
While this may disappoint those hoping for a complete restoration of the deduction, there is one positive takeaway. Employers can continue to deduct relocation expenses as a business cost. This permanent provision enables companies to maintain relocation budgets while offering tax assistance to employees through gross-up payments that help offset their individual tax burden.
The Impact on Mobility Programs
The permanent provision provides insight into companies relocating employees, allowing them to reassess and adjust their relocation policies, especially with more comprehensive support, such as gross-up payments, to limit tax exposure to the employee.
SALT Deduction Cap Raised
One of the most immediate and impactful provisions of the One Big Beautiful Bill is the increase in the State and Local Tax (SALT) deduction cap. Previously capped at ten thousand dollars, the new law raises the limit to forty thousand dollars per household through 2029. This change allows taxpayers to deduct significantly more in state and local taxes on their federal returns, providing meaningful relief for employees relocating to states with high income or property taxes.
The Impact on Mobility Programs
For companies moving talent into high-cost locations such as California, New York, New Jersey, or Illinois, the expanded SALT deduction can help ease the financial burden on employees and make previously cost-sensitive destinations more attractive. This shift may also open doors for companies that previously avoided expansion into high-tax regions due to relocation cost concerns. With the SALT deduction cap now substantially higher, the financial landscape of domestic mobility has changed.
Tax Incentives Reshaping the Map for Talent Strategy
Among the most consequential changes in the One Big Beautiful Bill is the permanent extension of business tax incentives that encourage domestic investment. Companies can now continue to fully expense capital expenditures, such as buildings and equipment, a provision introduced initially in the 2017 tax law. Lawmakers designed the extension and related tax benefits to stimulate long-term growth by making it more financially attractive for businesses to expand operations within the United States.
As companies reevaluate where they invest, hire, or build, these tax incentives could shift the demand for talent across locations. Cost savings may influence certain industries such as technology manufacturing and logistics, especially as they expand into less developed areas and emerging markets.
The Impact on Mobility Programs
Mobility teams should be at the table early during expansion discussions. With relocation volume potentially following new capital investment patterns, having a clear talent deployment strategy aligned with tax-informed decisions will be critical to success.
529 Plan Expansion: Fueling Professional Growth Through Mobility
The One Big Beautiful Bill expands how 529 education savings plans are used, allowing funds to cover workforce development and professional credentials in addition to traditional college expenses. This includes certifications relevant to the mobility industry, such as the Certified Relocation Professional (CRP) and Global Mobility Specialist Talent (GMS-T) designations.
This change gives employees and employers greater flexibility to invest in ongoing career development without relying solely on out-of-pocket costs or company-sponsored tuition reimbursement.
The Impact on Mobility Programs
The ability to use 529 funds for certifications creates new opportunities for employers to encourage skill building within mobility and HR teams. It also supports relocating employees pursuing new roles, cross-training, or development goals as part of their move.
By aligning professional development with financial planning tools, companies can support career growth and retention, while building stronger internal mobility expertise.
Immigration Impacts: Preparing for Delays and Rising Costs
The OBBB introduces significant changes to the U.S. immigration policy, emphasizing stricter enforcement
Among the most notable changes are enhanced screening procedures for specific visa categories, new fees tied to immigration filings, and increased funding for visa processing infrastructure. While the long-term goal is to streamline operations and reduce backlogs, companies may experience temporary delays as new systems and staffing models are rolled out.
The Impact on Mobility Programs
Companies that rely on international talent should prepare for more complex planning and potentially higher costs when sponsoring employees or managing cross-border moves.
While some final details are still being clarified through follow-up regulations, immigration will remain a high priority in the evolving mobility landscape. Companies that act early to assess the impact of these changes will be better equipped to protect their global workforce strategy and ensure a positive relocation experience.
Conclusion: Navigating Change with Confidence and Strategy
The One Big Beautiful Bill marks a pivotal moment for corporate relocation and global mobility programs. By making key TCJA provisions permanent, increasing the SALT deduction cap, expanding tax incentives, and introducing immigration-related changes, this legislation reshapes the financial and operational landscape for relocating employees and their employers.
The path forward for HR and mobility professionals is clear: proactive adaptation is essential. This means revisiting relocation policies, aligning closely with finance and tax teams, and preparing for evolving immigration requirements. It also means leveraging new opportunities such as the expanded use of 529 plans for professional development to support talent retention and career growth.
NEI is committed to helping you navigate legislative changes as they occur with clarity and confidence. We are ready to assist our clients with tailored solutions that keep their mobility program compliant, competitive, and aligned with their business strategies.
