On July 4, 2025, H.R.1, the One Big Beautiful Bill Act, was signed into law, bringing changes to the tax landscape. While there are many items specific to individual filing deductions and savings, townships may be especially interested in the following: 

• Overtime Compensation Deduction: Offers a temporary above-the-line deduction of up to $12,500 ($25,000 for joint filers) for qualified overtime pay from 2025 through 2028. It phases out for modified AGI over $150,000 ($300,000 joint filers) and requires overtime amounts to be separately reported on Form W-2 or 1099. 
• Charitable Contribution Deduction: Allows nonitemizers to deduct up to $1,000 (single filers) or $2,000 (married filing jointly) for qualified charitable contributions. For itemizers, imposes a 0.5% floor on the charitable deduction by reducing the deductible amount by 0.5% of the taxpayer’s contribution base for the tax year. Both items are effective for tax years beginning after December 31, 2025.