No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Thursday, September 18, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home IRS & Taxes

One Big Beautiful Bill Act Senate Approval

by TheAdviserMagazine
3 months ago
in IRS & Taxes
Reading Time: 4 mins read
A A
One Big Beautiful Bill Act Senate Approval
Share on FacebookShare on TwitterShare on LInkedIn


Updated July 1, 2025

On Tuesday, July 1, the Senate narrowly approved its version of the “One Big Beautiful Bill Act,”. The vote was 51 to 50, with Vice President Vance casting the deciding vote. The Senate bill refined the tax and spending legislation previously passed by the House. This sweeping bill includes extensions of tax cuts, spending reductions for federal programs, and updates to Medicaid policies. However, key differences between the House and Senate provisions, coupled with rulings from the Senate parliamentarian, have introduced complexity into its path forward.

This article provides an overview of the notable Senate updates, including the parliamentarian’s rulings, Medicaid provisions, SALT deduction adjustments, and other revisions, including any significant changes during the Senate “vote-a-rama” that began on June 30th.

Key Senate Updates to the Bill

Parliamentarian Rulings Shape Final Senate Text

One of the most significant developments stems from rulings by Senate Parliamentarian Elizabeth MacDonough. Applying the Byrd Rule, which restricts reconciliation bills to provisions directly related to federal spending, several high-profile items were ruled ineligible for inclusion. Among the provisions removed were:

Medicaid Restrictions – Efforts to block noncitizen immigrants from receiving Medicaid, Medicare, and CHIP benefits were excluded. Provisions targeting funding for gender-affirming care were also barred.
Judicial Oversight Limits – A proposal to restrict federal courts’ ability to issue nationwide injunctions or temporary restraining orders was deemed noncompliant.
Public Lands Sales – Attempts to expedite the sale of federal lands were struck, even after pushback from GOP senators and hunting advocacy groups.
Environmental Rollbacks – The repeal of EPA standards for vehicle emissions and a measure allowing developers to bypass judicial environmental reviews were removed.
Federal Oversight Changes – Language weakening the Consumer Financial Protection Bureau and slashing pay for Federal Reserve staff also failed to pass the reconciliation test.

These rulings ensure the bill narrowly adheres to the reconciliation framework, requiring only 51 Senate votes for approval instead of the typical 60.

Medicaid Provision Adjustments

Medicaid-related provisions remain a contentious area. The original House bill froze state provider taxes at current levels and prohibited new taxes, aiming to lower federal Medicaid contributions. Conversely, the Senate proposed sharper cost reductions by gradually lowering allowable provider taxes from 6% to 3.5% by 2031. However, this proposal has been met with resistance from moderate lawmakers and faced scrutiny following the parliamentarian’s rulings.

A coalition of 16 House Republicans outlined their opposition in a letter, warning that the Senate’s sharper cuts could jeopardize Medicaid access and complicate states’ ability to meet their funding obligations.

SALT Deduction Disagreement

Disputes over the state and local tax (SALT) deduction cap remain unresolved. The House initially proposed raising the cap from $10,000 to $40,000 for households earning up to $500,000, coupling this with annual indexing for inflation through 2033. The Senate, however, has leaned toward a stricter approach, proposing to make the $10,000 cap permanent. The final Senate version includes a “vote-a-rama” amendment raising the deduction to $40,000 for five years.

This impasse has sparked significant debate, particularly among lawmakers from high-tax states. The House “SALT caucus” has indicated it may withhold support for the final bill unless more lenient deduction provisions are included. Senate negotiators are reportedly working toward a compromise that balances fiscal conservatism with support from moderate Republicans.

Other Significant Changes to Tax Provisions

In addition to the SALT deduction issue, the following are some other major tax provisions affecting businesses and high-income taxpayers that have been modified in the Senate version of the bill:

Deduction for Qualified Business Income – The Senate bill would make the deduction permanent at 20%, lower than the 23% deduction in the House bill. The Senate bill would also increase the deduction phaseout limits to $75,000 for single filers and $150,000 for married filing jointly.
Bonus Depreciation for Qualified Property – The House bill extended bonus depreciation through 2029. The Senate bill makes the extension permanent. In addition, the Senate bill includes an option to elect 40% bonus depreciation in lieu of 100% bonus depreciation for qualified property placed in service in the first tax year ending after Jan. 19, 2025.
Limitation on Business Interest Expense – Consistent with the House bill, the Senate bill would also allow adjusted taxable income to be calculated without deductions for depreciation, amortization, or depletion. However, the Senate bill would make this change permanent, while under the House bill it would expire Dec. 31, 2029.
Charitable Contributions for Nonitemizers – The House bill allows for an above-the-line deduction of $150 for individuals and $300 for married couples for charitable contributions for taxable years beginning after Dec. 31, 2024, and before Jan. 1, 2029. The Senate bill permanently increases the amount to $1,000 for individuals and $2,000 for married couples for taxable years beginning after Dec. 31, 2024.
Expensing of Research and Development Expenses – The House bill allows immediate expensing for 5 years rather than a 5-year amortization period for domestic R&D amounts paid or incurred in tax years beginning after Dec. 31, 2024, and before Jan. 1, 2030. The Senate bill allows permanent expensing rather than a 5-year amortization period for domestic R&D amounts paid or incurred in tax years beginning after Dec. 31, 2024. For further information on the R&D update, click here. 

Energy and Climate Provisions Phase-Out

The Senate text aligns with the House in phasing out several renewable energy subsidies and tax credits. Key items to sunset include:

Electric Vehicle Tax Credit – The $7,500 credit for new electric vehicle purchases and various subsidies for commercial vehicles will be fully eliminated by 2027.
Residential Renewable Energy Incentives – Credits for solar panels and wind energy installations will sunset after 2025, marking a departure from recent climate-friendly initiatives.

The Next Steps

Now that the Senate has approved its version of the bill, it now goes back to House later this week, where passage is not guaranteed. Any change in the House would require the bill to return to the Senate, which may prohibit passage of the bill by President Trump’s July 4th deadline.

Conclusion

The “One Big Beautiful Bill Act” represents a pivotal moment in shaping federal tax and fiscal policy. The Senate’s ability to balance these proposals with adherence to reconciliation rules has led to significant revisions and drawn sharp debate. While the finalized legislation’s impact will unfold across sectors, its passage or failure could have lasting implications for the economic and political landscape.

Legislative activity regarding this important law change is ongoing. We will continue to monitor the situation and provide timely updates as they become available.

To get notified on key updates on the “One Big Beautiful Bill Act”, sign up to our subscriber list. 

For more information on how to navigate the “One Big Beautiful Bill Act”, contact our Herbein tax team today.

Article Contributed by Stacy Weller



Source link

Tags: ActapprovalbeautifulbigbillSenate
ShareTweetShare
Previous Post

Waiting for a Mortgage Break? Fannie Mae’s Prediction May Disappoint

Next Post

The Cyber Risks Behind The Iran-Israel-US Geopolitical Tensions

Related Posts

edit post
The Progressivity of the US Tax Code | The Short Form

The Progressivity of the US Tax Code | The Short Form

by TheAdviserMagazine
September 17, 2025
0

This is part of our educational blog series, “The Short Form,” to simplify taxA tax is a mandatory payment or...

edit post
A Pathway to Professional Freedom: The Case for Simplicity

A Pathway to Professional Freedom: The Case for Simplicity

by TheAdviserMagazine
September 17, 2025
0

The Wake-Up Call We Didn’t Expect  When COVID arrived, it forced firms everywhere into an unplanned experiment. Overnight, offices shut...

edit post
Canopy Smart Intake Expands to Include AI-Driven Document Requests

Canopy Smart Intake Expands to Include AI-Driven Document Requests

by TheAdviserMagazine
September 16, 2025
0

Create a custom request list in seconds with information already in Canopy SALT LAKE CITY –September 16, 2025 – Canopy,...

edit post
How AI is affecting accounting advisory

How AI is affecting accounting advisory

by TheAdviserMagazine
September 16, 2025
0

While many firms are still debating whether to adopt AI, their clients have already moved past the question of if — and...

edit post
Common LLC Errors That Put Rental Property Owners at Risk |

Common LLC Errors That Put Rental Property Owners at Risk |

by TheAdviserMagazine
September 16, 2025
0

Why LLC Mistakes Matter Many real estate investors create an LLC for asset protection, thinking the work is done. But...

edit post
Online Sports Betting Taxes, 2025

Online Sports Betting Taxes, 2025

by TheAdviserMagazine
September 16, 2025
0

Significant Changes Since January 1, 2024 Delaware began legal online sports gambling operations with a 50 percent tax rate, the...

Next Post
edit post
The Cyber Risks Behind The Iran-Israel-US Geopolitical Tensions

The Cyber Risks Behind The Iran-Israel-US Geopolitical Tensions

edit post
12 Ways to Reap the Rewards of Shopping at Aldi

12 Ways to Reap the Rewards of Shopping at Aldi

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Who Needs a Trust Instead of a Will in North Carolina?

Who Needs a Trust Instead of a Will in North Carolina?

September 1, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
Big Dave’s Cheesesteaks CEO grew up in ‘survival mode’ selling newspapers and bean pies—now his chain sells a  cheesesteak every 58 seconds

Big Dave’s Cheesesteaks CEO grew up in ‘survival mode’ selling newspapers and bean pies—now his chain sells a $12 cheesesteak every 58 seconds

August 30, 2025
edit post
weighing up activist advice for US giant

weighing up activist advice for US giant

0
edit post
Anarcho-Tyranny and Danger in Public Spaces

Anarcho-Tyranny and Danger in Public Spaces

0
edit post
Analyst Calls  XRP Target for November Amid Ripple CEO’s White House Stockpile Hint

Analyst Calls $6 XRP Target for November Amid Ripple CEO’s White House Stockpile Hint

0
edit post
Are Credit Score and CIBIL Score the Same? Common Myths Busted

Are Credit Score and CIBIL Score the Same? Common Myths Busted

0
edit post
Smallcap multibagger defence stock surges 20% after Rs 95-crore BrahMos order win

Smallcap multibagger defence stock surges 20% after Rs 95-crore BrahMos order win

0
edit post
American Express Platinum Card Refresh 2025: 5 fee, ,500 perks

American Express Platinum Card Refresh 2025: $895 fee, $3,500 perks

0
edit post
weighing up activist advice for US giant

weighing up activist advice for US giant

September 18, 2025
edit post
Anarcho-Tyranny and Danger in Public Spaces

Anarcho-Tyranny and Danger in Public Spaces

September 18, 2025
edit post
Are Credit Score and CIBIL Score the Same? Common Myths Busted

Are Credit Score and CIBIL Score the Same? Common Myths Busted

September 18, 2025
edit post
Smallcap multibagger defence stock surges 20% after Rs 95-crore BrahMos order win

Smallcap multibagger defence stock surges 20% after Rs 95-crore BrahMos order win

September 18, 2025
edit post
American Express Platinum Card Refresh 2025: 5 fee, ,500 perks

American Express Platinum Card Refresh 2025: $895 fee, $3,500 perks

September 18, 2025
edit post
Analyst Calls  XRP Target for November Amid Ripple CEO’s White House Stockpile Hint

Analyst Calls $6 XRP Target for November Amid Ripple CEO’s White House Stockpile Hint

September 18, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • weighing up activist advice for US giant
  • Anarcho-Tyranny and Danger in Public Spaces
  • Are Credit Score and CIBIL Score the Same? Common Myths Busted
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.