TCJA Employee Benefits Made Permanent in the OBBBA

Tax-Free Employer-Paid Student Loan Repayments: Continue to provide up to $5,250 annually in student loan repayment assistance on a tax-free basis. For tax years beginning after 2026, this amount will be indexed for inflation.

Moving Expenses: Reimbursements for moving expenses remain taxable to employees, except for active-duty members moving due to military order and permanent change of station and intelligence personnel relocating due to change in assignment.

Employer-Paid Family & Medical Leave Credit (IRC 45S): Starting in 2026, businesses may claim a credit for insurance premiums and state/local government mandated paid leave.

Employer-Provided Child Care Credit (IRC 45F): Maximum credit increased from $150,000 to $500,000 (and up to $600,000 for small businesses), increased from 25% to up to 40–50% of expenses for amounts paid or incurred after 12/31/25. Beginning in 2027, maximum credit amounts will be indexed for inflation.

Dependent Care Flexible Spending Accounts (FSA): Beginning in 2026, the contribution limit will increase from $5,000 to $7,500 (or $3,750 for married individuals filing separately).

Telehealth: First-dollar coverage for high-deductible health plans (HDHPs) made permanent.

Direct Primary Care: Beginning in 2026, eligible for HSA and treated as medical expense, subject to limits listed below and exclusions.

Expands Health Savings Accounts (HSAs): now includes individuals covered by direct primary care arrangement costing no more than $150/month for individuals or $300/month for families. Beginning in 2026, any bronze or catastrophic plan offered in the individual market on a health care exchange will be treated as a high-deductible health plan (HDHP).

Employee Meal Deduction: after 12/31/25, deduction disallowed for employer-provided food, beverage and operational expenses associated with an employer-operated eating facility and any expense for meals provided to employees on the business premises “for the convenience of the employer,” except for certain fishing boats, fish processing facilities and oil rigs in Alaska.