The House GOP’s “Big Beautiful Bill” focuses on extending the 2017 Tax Cuts and Jobs Act (TCJA) while introducing new tax and spending changes. Key highlights include:
Individual Tax Provisions
- Child Tax Credit Expansion – Increases the credit amount and adjusts income phase-outs.
- Standard Deduction Increase – Permanently extends the doubled standard deduction from the TCJA.
- Alternative Minimum Tax (AMT) Exemption – Raises exemption thresholds to reduce tax burdens.
- SALT Deduction Cap Adjustment – Increases the deduction limit for state and local taxes.
Estate & Gift Tax Provisions
- Estate Tax Exemption Increase – Raises the exemption to $15 million, adjusted for inflation.
- Gift Tax Planning Enhancements – Allows larger lifetime gifts under the new exemption limits.
Business Tax Provisions
- Pass-Through Deduction Extension – Continues the 20% deduction for qualified business income.
- Bonus Depreciation & R&D Expensing – Some provisions sunset, reducing incentives for investment.
- Corporate Tax Rate Stability – Maintains the 21% corporate tax rate from the TCJA.
- Expanded Deductions for Business Expenses – Includes new limits on certain deductions.
Other Key Provisions
- Health Savings Account (HSA) Contribution Limits – Increases allowable contributions.
- Tax Benefits for Overtime Pay & Tips – Introduces deductions for specific types of income.
- Medicaid & SNAP Adjustments – Includes spending cuts and eligibility changes.
Source:
https://taxfoundation.org/research/all/federal/big-beautiful-bill-house-gop-tax-plan/#timeline