The bill permanently extends many temporary individual tax provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) that were set to expire at the end of the year including lower individual tax rates, increased standard deduction, and qualified business income deduction. OBBBA also provides temporary income exclusions for certain tips and overtime, adds a new temporary deduction for seniors, and repeals many clean energy credits and incentives. It would also make certain business tax breaks permanent, including immediate full research expensing and 100% bonus depreciation. Lawmakers settled on a temporary state and local tax deduction cap increase to $40,000.
Nonpartisan economic projections indicate that the bill will add roughly $4 trillion to the national debt over the next decade.
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Published: 07/03/2025
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