One Big Beautiful Bill Act: what this law changes in taxes
This law amends federal tax law in 321 places, in 108 sections of the law.
Changes to tables of contents, and conforming changes
Each provision below is one sentence of the law that says a part of a federal tax law is amended or repealed. The words are the law’s own. The tax type comes from the number of the Code section the sentence names.
- Title VII, Subtitle A, Section 70103: TERMINATION OF DEDUCTION FOR PERSONAL EXEMPTIONS OTHER THAN TEMPORARY SENIOR DEDUCTION (b)Table of contents or conforming change
Amends section 6213(g)(2) of the Internal Revenue Code of 1986.
“Section 6213(g)(2) is amended by striking ``and'' at the end of subparagraph (U), by striking the period at the end of subparagraph (V) and inserting ``, and'', and by inserting after subparagraph (V) the following new subparagraph: ``(W) an omission of a correct social security number required under section 151(d)(5)(C) (relating to deduction for seniors).''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70104: EXTENSION AND ENHANCEMENT OF INCREASED CHILD TAX CREDIT (d)Table of contents or conforming change
Amends section 24(h)(5) of the Internal Revenue Code of 1986.
“Section 24(h)(5) is amended to read as follows: ``(5) Maximum amount of refundable credit.--The amount determined under subsection (d)(1)(A) with respect to any qualifying child shall not exceed $1,400, and such subsection shall be applied without regard to paragraph (4) of this subsection.''.”
Effective date, in the law’s words (subsection (f)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70104: EXTENSION AND ENHANCEMENT OF INCREASED CHILD TAX CREDIT (e)Table of contents or conforming change
Amends section 6213(g)(2)(I) of the Internal Revenue Code of 1986.
“Section 6213(g)(2)(I) is amended by striking ``section 24(e)'' and inserting ``section 24''.”
Effective date, in the law’s words (subsection (f)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70119: EXTENSION AND MODIFICATION OF EXCLUSION FROM GROSS INCOME OF STUDENT LOANS DISCHARGED ON ACCOUNT OF DEATH OR DISABILITY (b)Table of contents or conforming change
Amends section 6213(g)(2) of the Internal Revenue Code of 1986.
“Section 6213(g)(2), as amended by this Act, is further amended by striking ``and'' at the end of subparagraph (V), by striking the period at the end of subparagraph (W) and inserting ``, and'', and by inserting after subparagraph (W) the following new subparagraph: ``(X) an omission of a correct social security number required under section 108(f)(5)(C) (relating to discharges on account of death or disability).''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to discharges after December 31, 2025.”
- Title VII, Subtitle A, Section 70201: NO TAX ON TIPS (c)Table of contents or conforming change
Amends section 6213(g)(2) of the Internal Revenue Code of 1986.
“Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of subparagraph (W), by striking the period at the end of subparagraph (X) and inserting ``, and'', and by inserting after subparagraph (X) the following new subparagraph: ``(Y) an omission of a correct social security number required under section 224(e) (relating to deduction for qualified tips).''.”
Effective date, in the law’s words (subsection (j)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70201: NO TAX ON TIPS (g)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for part VII of subchapter B of chapter 1.
“The table of sections for part VII of subchapter B of chapter 1 is amended by redesignating the item relating to section 224 as relating to section 225 and by inserting after the item relating to section 223 the following new item: ``Sec. 224. Qualified tips.''. (h) Published List of Occupations Traditionally Receiving Tips. --Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall publish a list of occupations which customarily and regularly received tips on or before December 31, 2024, for purposes of section 224(d)(1) of the Internal Revenue Code of 1986 (as added by subsection (a)).”
Effective date, in the law’s words (subsection (j)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70202: NO TAX ON OVERTIME (d)Table of contents or conforming change
Amends section 6213(g)(2) of the Internal Revenue Code of 1986.
“Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of subparagraph (X), by striking the period at the end of subparagraph (Y) and inserting ``, and'', and by inserting after subparagraph (Y) the following new subparagraph: ``(Z) an omission of a correct social security number required under section 225(d) (relating to deduction for qualified overtime).''.”
Effective date, in the law’s words (subsection (g)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70202: NO TAX ON OVERTIME (e)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for part VII of subchapter B of chapter 1, as amended by the preceding provisions of this Act,.
“The table of sections for part VII of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by redesignating the item relating to section 225 as an item relating to section 226 and by inserting after the item relating to section 224 the following new item: ``Sec. 225. Qualified overtime compensation.''.”
Effective date, in the law’s words (subsection (g)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70203: NO TAX ON CAR LOAN INTEREST (d)Table of contents or conforming change
Amends section 56(e)(1)(B) of the Internal Revenue Code of 1986.
“Section 56(e)(1)(B) is amended by striking ``section 163(h)(4)'' and inserting ``section 163(h)(5)''. (2)”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to indebtedness incurred after December 31, 2024.”
- Title VII, Subtitle A, Section 70203: NO TAX ON CAR LOAN INTEREST (d)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for subpart B of part III of subchapter A of chapter 61.
“The table of sections for subpart B of part III of subchapter A of chapter 61 is amended by adding at the end the following new item: ``Sec. 6050AA. Returns relating to applicable passenger vehicle loan interest received in trade or business from individuals.''.”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to indebtedness incurred after December 31, 2024.”
- Title VII, Subtitle A, Section 70204: TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM (a)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of parts for subchapter F of chapter 1.
“The table of parts for subchapter F of chapter 1 is amended by adding at the end the following new item: ``PART IX--Trump Accounts''.”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70204: TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM (b)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for part III of subchapter B of chapter 1.
“The table of sections for part III of subchapter B of chapter 1 is amended by inserting after the item relating to section 127 the following new item: ``Sec. 128. Employer contributions to Trump accounts.''.”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70204: TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM (c)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for part III of subchapter B.
“The table of sections for part III of subchapter B is amended by inserting before the item relating to section 140 the following new item: ``Sec. 139J. Certain contributions to Trump accounts.''.”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70204: TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM (d)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for subchapter B of chapter 65.
“The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item: ``Sec. 6434. Trump accounts contribution pilot program.''. (B)”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70204: TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM (d)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for part I of subchapter A of chapter 68.
“The table of sections for part I of subchapter A of chapter 68 is amended by inserting after the item relating to section 6658 the following new item: ``Sec. 6659. Improper claim for Trump account contribution pilot program credit.''.”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70302: FULL EXPENSING OF DOMESTIC RESEARCH AND EXPERIMENTAL EXPENDITURES (d)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for part VI of subchapter B of chapter 1.
“The table of sections for part VI of subchapter B of chapter 1 is amended by inserting after the item relating to section 174 the following new item: ``Sec. 174A. Domestic research or experimental expenditures.''.”
Effective date, in the law’s words (subsection (e)): “(1) In general.--Except as otherwise provided in this subsection or subsection (f)(1), the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2024.” The quote stops here.
- Title VII, Subtitle A, Section 70306: INCREASED DOLLAR LIMITATIONS FOR EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS (b)Table of contents or conforming change
Amends section 179(b)(6)(A) of the Internal Revenue Code of 1986.
“Section 179(b)(6)(A) is amended-- (1) by inserting ``(2025 in the case of the dollar amounts in paragraphs (1) and (2))'' after ``In the case of any taxable year beginning after 2018'', and (2) in clause (ii), by striking ``determined by substituting `calendar year 2017' for `calendar year 2016' in subparagraph (A)(ii) thereof.'' and inserting "determined by substituting in subparagraph (A)(ii) thereof-- `` ``(I) in the case of amounts in paragraphs (1) and (2), `calendar year 2024' for `calendar year 2016', and ``(II) in the case of the amount in paragraph (5)(A), `calendar year 2017' for `calendar year 2016'.''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70309: SPACEPORTS ARE TREATED LIKE AIRPORTS UNDER EXEMPT FACILITY BOND RULES (e)Table of contents or conforming change
Amends section 142(c) of the Internal Revenue Code of 1986.
“The heading for section 142(c) is amended by inserting ``Spaceports,'' after ``Airports,''.”
Effective date, in the law’s words (subsection (f)): “The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. Subchapter B--Permanent America-first International Tax Reforms PART I--FOREIGN TAX CREDIT”
- Title VII, Subtitle A, Section 70323: RULES RELATED TO DEEMED INTANGIBLE INCOME (a)Table of contents or conforming change
Amends section 951A of the Internal Revenue Code of 1986.
“The item relating to section 951A in the table of sections for subpart F of part III of subchapter N of chapter 1 is amended by striking ``Global intangible low-taxed income'' and inserting ``Net CFC tested income''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART III--BASE EROSION MINIMUM TAX”
- Title VII, Subtitle A, Section 70323: RULES RELATED TO DEEMED INTANGIBLE INCOME (b)Table of contents or conforming change
Amends section 172(d)(9) of the Internal Revenue Code of 1986.
“The heading for section 172(d)(9) is amended by striking ``intangible'' and inserting ``deduction eligible''. (iii)”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART III--BASE EROSION MINIMUM TAX”
- Title VII, Subtitle A, Section 70323: RULES RELATED TO DEEMED INTANGIBLE INCOME (b)Table of contents or conforming change
Amends section 250 of the Internal Revenue Code of 1986.
“The item relating to section 250 in the table of sections for part VIII of subchapter B of chapter 1 is amended by striking ``intangible'' and inserting ``deduction eligible''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART III--BASE EROSION MINIMUM TAX”
- Title VII, Subtitle A, Section 70331: EXTENSION AND MODIFICATION OF BASE EROSION MINIMUM TAX AMOUNT (b)Table of contents or conforming change
Amends section 59A(b)(1) of the Internal Revenue Code of 1986.
“Section 59A(b)(1) is amended by striking ``Except as provided in paragraphs (2) and (3)'' and inserting ``Except as provided in paragraph (2)''. (2)”
Effective date, in the law’s words (subsection (d)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART IV--BUSINESS INTEREST LIMITATION”
- Title VII, Subtitle A, Section 70331: EXTENSION AND MODIFICATION OF BASE EROSION MINIMUM TAX AMOUNT (b)Table of contents or conforming change
Amends section 59A(b)(2) of the Internal Revenue Code of 1986.
Old New the percentage otherwise in effect under paragraphs (1)(A) and (2)(A) shall each be increased the percentages otherwise in effect under paragraph (1)(A) shall be increased “Section 59A(b)(2), as redesignated by subsection (a)(2), is amended by striking ``the percentage otherwise in effect under paragraphs (1)(A) and (2)(A) shall each be increased'' and inserting ``the percentages otherwise in effect under paragraph (1)(A) shall be increased''. (3)”
Effective date, in the law’s words (subsection (d)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART IV--BUSINESS INTEREST LIMITATION”
- Title VII, Subtitle A, Section 70331: EXTENSION AND MODIFICATION OF BASE EROSION MINIMUM TAX AMOUNT (b)Table of contents or conforming change
Amends section 59A(e)(1)(C) of the Internal Revenue Code of 1986.
“Section 59A(e)(1)(C) is amended by striking ``in the case of a taxpayer described in subsection (b)(3)(B)'' and inserting ``in the case of a taxpayer described in subsection (b)(2)(B)''.”
Effective date, in the law’s words (subsection (d)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025. PART IV--BUSINESS INTEREST LIMITATION”
- Title VII, Subtitle A, Section 70353: RESTORATION OF LIMITATION ON DOWNWARD ATTRIBUTION OF STOCK OWNERSHIP IN APPLYING CONSTRUCTIVE OWNERSHIP RULES (c)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for subpart F of part III of subchapter N of chapter 1.
“The table of sections for subpart F of part III of subchapter N of chapter 1 is amended by inserting after the item relating to section 951A the following new item: ``Sec. 951B. Amounts included in gross income of foreign controlled United States shareholders.''.”
Effective date, in the law’s words (subsection (d)): “The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70411: TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO SCHOLARSHIP GRANTING ORGANIZATIONS (a)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for subpart A of part IV of subchapter A of chapter 1.
“The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25E the following new item: ``Sec. 25F. Qualified elementary and secondary education scholarships.''.”
Effective date, in the law’s words (subsection (c)): “(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years ending after December 31, 2026. (2) Exclusion from gross income.--The amendments made by subsection (b) shall apply to amounts received after December 31, 2026, in taxable years ending after such date.”
- Title VII, Subtitle A, Section 70411: TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO SCHOLARSHIP GRANTING ORGANIZATIONS (b)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for part III of subchapter B of chapter 1.
“The table of sections for part III of subchapter B of chapter 1 is amended by inserting before the item relating to section 140 the following new item: ``Sec. 139K. Scholarships for qualified elementary or secondary education expenses of eligible students.''.”
Effective date, in the law’s words (subsection (c)): “(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years ending after December 31, 2026. (2) Exclusion from gross income.--The amendments made by subsection (b) shall apply to amounts received after December 31, 2026, in taxable years ending after such date.”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (d)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for subpart A of part III of subchapter A of chapter 61.
“The table of sections for subpart A of part III of subchapter A of chapter 61 is amended by inserting after the item relating to section 6039J the following new items: ``Sec. 6039K. Returns with respect to qualified opportunity funds and qualified rural opportunity funds. ``Sec. 6039L. Information required from qualified opportunity zone businesses and qualified rural opportunity zone businesses.''. (B)”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (d)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for part II of subchapter B of chapter 68.
“The table of sections for part II of subchapter B of chapter 68 is amended by inserting after the item relating to section 6725 the following new item: ``Sec. 6726. Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds.''. (5) Effective date.--The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act.”
- Title VII, Subtitle A, Section 70426: 1-PERCENT FLOOR ON DEDUCTION OF CHARITABLE CONTRIBUTIONS MADE BY CORPORATIONS (c)Table of contents or conforming change
Amends section 170(b)(2) of the Internal Revenue Code of 1986.
“Subparagraphs (B)(ii) and (C)(ii) of section 170(b)(2) are each amended by inserting ``other than subparagraph (C) thereof'' after ``subsection (d)(2)''.”
Effective date, in the law’s words (subsection (d)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70433: INCREASE IN THRESHOLD FOR REQUIRING INFORMATION REPORTING WITH RESPECT TO CERTAIN PAYEES (e)Table of contents or conforming change
Amends section 6041(a) of the Internal Revenue Code of 1986.
Old New of $600 or More Exceeding Threshold “The heading of section 6041(a) is amended by striking ``of $600 or More'' and inserting ``Exceeding Threshold''. (2)”
Effective date, in the law’s words (subsection (f)): “The amendments made by this section shall apply with respect to payments made after December 31, 2025.”
- Title VII, Subtitle A, Section 70433: INCREASE IN THRESHOLD FOR REQUIRING INFORMATION REPORTING WITH RESPECT TO CERTAIN PAYEES (e)Table of contents or conforming change
Amends section 6041(a) of the Internal Revenue Code of 1986.
“Section 6041(a) is amended by striking ``taxable year'' and inserting ``calendar year''.”
Effective date, in the law’s words (subsection (f)): “The amendments made by this section shall apply with respect to payments made after December 31, 2025.”
- Title VII, Subtitle A, Section 70434: TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING PRODUCTIONS (h)Table of contents or conforming change
Amends section 181 of the Internal Revenue Code of 1986.
“The heading for section 181 is amended to read as follows: ``treatment of certain qualified productions.''. (2)”
Effective date, in the law’s words (subsection (i)): “The amendments made by this section shall apply to productions commencing in taxable years ending after the date of the enactment of this Act.”
- Title VII, Subtitle A, Section 70434: TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING PRODUCTIONS (h)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for part VI of subchapter B of chapter 1.
“The table of sections for part VI of subchapter B of chapter 1 is amended by striking the item relating to section 181 and inserting the following new item: ``Sec. 181. Treatment of certain qualified productions.''.”
Effective date, in the law’s words (subsection (i)): “The amendments made by this section shall apply to productions commencing in taxable years ending after the date of the enactment of this Act.”
- Title VII, Subtitle A, Section 70435: EXCLUSION OF INTEREST ON LOANS SECURED BY RURAL OR AGRICULTURAL REAL PROPERTY (b)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act,.
“The table of sections for part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 139K the following new item: ``Sec. 139L. Interest on loans secured by rural or agricultural real property.''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.”
- Title VII, Subtitle A, Section 70436: REDUCTION OF TRANSFER AND MANUFACTURING TAXES FOR CERTAIN DEVICES (c)Table of contents or conforming change
Amends section 4182(a) of the Internal Revenue Code of 1986.
“Section 4182(a) is amended by adding at the end the following: ``For purposes of the preceding sentence, any firearm described in section 5811(a)(2) shall be deemed to be a firearm on which the tax provided by section 5811 has been paid.''”
Effective date, in the law’s words (subsection (d)): “The amendments made by this section shall apply to calendar quarters beginning more than 90 days after the date of the enactment of this Act.”
- Title VII, Subtitle A, Section 70437: TREATMENT OF CAPITAL GAINS FROM THE SALE OF CERTAIN FARMLAND PROPERTY (b)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for part IV of subchapter O of chapter 1.
“The table of sections for part IV of subchapter O of chapter 1 is amended by redesignating the item relating to section 1062 as relating to section 1063 and by inserting after the item relating to section 1061 the following new item: ``Sec. 1062. Gain from the sale or exchange of qualified farmland property to qualified farmers.''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to sales or exchanges in taxable years beginning after the date of the enactment of this Act.”
- Title VII, Subtitle A, Section 70502: TERMINATION OF CLEAN VEHICLE CREDIT (b)Table of contents or conforming change
Amends section 30D(e) of the Internal Revenue Code of 1986.
“Section 30D(e) is amended-- (1) in paragraph (1)(B)-- (A) in clause (iii), by inserting ``and'' after the comma at the end, (B) in clause (iv), by striking ``, and'' and inserting a period, and (C) by striking clause (v), and (2) in paragraph (2)(B)-- (A) in clause (ii), by inserting ``and'' after the comma at the end, (B) in clause (iii), by striking the comma at the end and inserting a period, and (C) by striking clauses (iv) through (vi).”
- Title VII, Subtitle A, Section 70505: TERMINATION OF ENERGY EFFICIENT HOME IMPROVEMENT CREDIT (b)Table of contents or conforming change
Amends section 25C(d)(2)(C) of the Internal Revenue Code of 1986.
“Section 25C(d)(2)(C) is amended to read as follows: ``(C) Any oil furnace or hot water boiler which-- ``(i) meets or exceeds 2021 Energy Star efficiency criteria, and ``(ii) is rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of an eligible fuel.''.”
- Title VII, Subtitle A, Section 70506: TERMINATION OF RESIDENTIAL CLEAN ENERGY CREDIT (b)Table of contents or conforming change
Amends section 25D(g) of the Internal Revenue Code of 1986.
Old New and before January 1, 2033, 30 percent, 30 percent. “Section 25D(g) is amended-- (1) in paragraph (2), by inserting ``and'' after the comma at the end, (2) in paragraph (3), by striking `` and before January 1, 2033, 30 percent,'' and inserting ``30 percent.'', and (3) by striking paragraphs (4) and (5).”
- Title VII, Subtitle A, Section 70512: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT (g)Table of contents or conforming change
Amends section 45Y(b)(1) of the Internal Revenue Code of 1986.
“Section 45Y(b)(1) is amended-- (1) by redesignating subparagraph (D) as subparagraph (E), and (2) by inserting after subparagraph (C) the following new subparagraph: ``(D) Determination of capacity.--For purposes of subparagraph (C), additions of capacity of a facility shall be determined in any reasonable manner, including based on-- ``(i) determinations by, or reports to, the Federal Energy Regulatory Commission (including interconnection agreements), the Nuclear Regulatory Commission, or any similar entity, reflecting additions of capacity, ``(ii) determinations or reports reflecting additions of capacity made by an independent professional engineer, ``(iii) reports to, or issued by,”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (l)): “(1) In general.--Except as provided in paragraphs (2), (3), and (4), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Material assistance from prohibited foreign entities.-- The amendments made by subsection (b)(1) shall apply to facilities for which construction begins after December 31, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70512: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT (k)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for part I of subchapter B of chapter 68.
“The table of sections for part I of subchapter B of chapter 68 is amended by inserting after item relating to section 6695A the following new item: ``Sec. 6695B. Penalty for substantial misstatements on certification provided by supplier.''.”
Effective date, in the law’s words (subsection (l)): “(1) In general.--Except as provided in paragraphs (2), (3), and (4), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Material assistance from prohibited foreign entities.-- The amendments made by subsection (b)(1) shall apply to facilities for which construction begins after December 31, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70522: RESTRICTIONS ON CARBON OXIDE SEQUESTRATION CREDIT (c)Table of contents or conforming change
Amends section 6417(d)(3)(C)(i)(II)(bb) of the Internal Revenue Code of 1986.
“Section 6417(d)(3)(C)(i)(II)(bb) is amended by striking ``paragraph (3)(A) or (4)(A) of section 45Q(a)'' and inserting ``section 45Q(a)(3)(A)''.”
Effective date, in the law’s words (subsection (d)): “(1) Restrictions relating to prohibited foreign entities.-- The amendment made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. (2) Parity for different uses and utilizations of qualified carbon oxide.--The amendments made subsections (b) and (c) shall apply to facilities or equipment placed in service after the date of enactment of this Act.”
- Title VII, Subtitle A, Section 70525: ALLOW FOR PAYMENTS TO CERTAIN INDIVIDUALS WHO DYE FUEL (b)Table of contents or conforming change
Amends section 6206 of the Internal Revenue Code of 1986.
“Section 6206 is amended-- (A) by striking ``or 6427'' each place it appears and inserting ``6427, or 6435'', and (B) by striking ``6420 and 6421'' and inserting ``6420, 6421, and 6435''. (2)”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to eligible indelibly dyed diesel fuel or kerosene removed on or after the date that is 180 days after the date of the enactment of this section. Subchapter C--Other Reforms”
- Title VII, Subtitle A, Section 70525: ALLOW FOR PAYMENTS TO CERTAIN INDIVIDUALS WHO DYE FUEL (b)Table of contents or conforming change
Amends section 6430 of the Internal Revenue Code of 1986.
“Section 6430 is amended-- (A) by striking ``or'' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ``, or'', and by adding at the end the following new paragraph: ``(4) which are removed as eligible indelibly dyed diesel fuel or kerosene under section 6435.''. (3)”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to eligible indelibly dyed diesel fuel or kerosene removed on or after the date that is 180 days after the date of the enactment of this section. Subchapter C--Other Reforms”
- Title VII, Subtitle A, Section 70525: ALLOW FOR PAYMENTS TO CERTAIN INDIVIDUALS WHO DYE FUEL (b)Table of contents or conforming change
Amends section 6675 of the Internal Revenue Code of 1986.
“Section 6675 is amended-- (A) in subsection (a), by striking ``or 6427 (relating to fuels not used for taxable purposes)'' and inserting ``6427 (relating to fuels not used for taxable purposes), or 6435 (relating to eligible indelibly dyed fuel)'', and (B) in subsection (b)(1), by striking ``6421, or 6427,'' and inserting ``6421, 6427, or 6435,''. (4)”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to eligible indelibly dyed diesel fuel or kerosene removed on or after the date that is 180 days after the date of the enactment of this section. Subchapter C--Other Reforms”
- Title VII, Subtitle A, Section 70525: ALLOW FOR PAYMENTS TO CERTAIN INDIVIDUALS WHO DYE FUEL (b)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of sections for subchapter B of chapter 65, as amended by the preceding provisions of this Act,.
“The table of sections for subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: ``Sec. 6435. Dyed fuel.''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to eligible indelibly dyed diesel fuel or kerosene removed on or after the date that is 180 days after the date of the enactment of this section. Subchapter C--Other Reforms”
- Title VII, Subtitle A, Section 70604: EXCISE TAX ON CERTAIN REMITTANCE TRANSFERS (b)Table of contents or conforming change
Amends the Internal Revenue Code of 1986: The table of subchapters for chapter 36.
“The table of subchapters for chapter 36 is amended by inserting after the item relating to subchapter B the following new item: ``subchapter c--remittance transfers''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to transfers made after December 31, 2025.”
- Title VII, Subtitle A, Section 70606: SOCIAL SECURITY NUMBER REQUIREMENT FOR AMERICAN OPPORTUNITY AND LIFETIME LEARNING CREDITS (b)Table of contents or conforming change
Amends section 6213(g)(2)(J) of the Internal Revenue Code of 1986.
“Section 6213(g)(2)(J) is amended by striking ``TIN'' and inserting ``social security number or employer identification number''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle B, Section 71305: ELIMINATING LIMITATION ON RECAPTURE OF ADVANCE PAYMENT OF PREMIUM TAX CREDIT (b)Table of contents or conforming change
Amends section 36B(f)(2) of the Internal Revenue Code of 1986.
“Section 36B(f)(2) is amended by striking ``advance payments.--'' and all that follows through ``If the advance payments'' and inserting the following: ``advance payments.--If the advance payments''. (2)”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025. Subchapter C--Enhancing Choice for Patients”
Official estimate, and an estimate of your own
Official estimate: Joint Committee on Taxation
Confirmed from the official recordThe Joint Committee on Taxation is the tax staff of Congress. It published this table for the tax provisions of this law. Amounts are in billions of dollars for one calendar year. “Proposal” is the committee’s word for those provisions.
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $0.5 | 9.3% | 4.0% | 4.4% |
| $15,000 to $30,000 | -$3.5 | -21.5% | 2.9% | 2.3% |
| $30,000 to $40,000 | -$6.4 | -15.8% | 6.6% | 5.6% |
| $40,000 to $50,000 | -$9.0 | -14.5% | 9.0% | 7.7% |
| $50,000 to $60,000 | -$11.8 | -13.2% | 11.3% | 9.8% |
| $60,000 to $80,000 | -$27.0 | -12.0% | 13.1% | 11.5% |
| $80,000 to $100,000 | -$28.8 | -11.5% | 15.4% | 13.7% |
| $100,000 to $150,000 | -$65.5 | -10.7% | 17.3% | 15.5% |
| $150,000 to $200,000 | -$58.2 | -10.7% | 19.8% | 17.6% |
| $200,000 to $500,000 | -$150.8 | -9.8% | 24.1% | 21.8% |
| $500,000 to $1,000,000 | -$72.8 | -12.3% | 29.8% | 26.1% |
| $1,000,000 and Above | -$114.0 | -10.1% | 31.1% | 27.8% |
| Total, All Taxpayers | -$547.4 | -10.7% | 20.9% | 18.7% |
A negative number is a tax cut for that income category as a whole. The table gives no amount for one household. The committee’s footnotes say what counts as income and as federal taxes. They are in the file.
Joint Committee on Taxation, JCX-37-25, July 29, 2025: Distribution of the estimated revenue effects relative to the present law baseline of the tax provisions in Public Law 119-21. See its official page · Open our saved copy · Saved October 8, 2026 · Fingerprint d4b6df30545ba2b0
Show 2029, 2031 and 2033
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $2.0 | 42.2% | 3.3% | 4.7% |
| $15,000 to $30,000 | $0.3 | 1.6% | 3.1% | 3.2% |
| $30,000 to $40,000 | -$3.6 | -8.2% | 6.6% | 6.1% |
| $40,000 to $50,000 | -$6.0 | -8.8% | 9.1% | 8.3% |
| $50,000 to $60,000 | -$9.0 | -9.2% | 11.3% | 10.3% |
| $60,000 to $80,000 | -$22.3 | -9.0% | 13.1% | 11.9% |
| $80,000 to $100,000 | -$23.5 | -8.5% | 15.4% | 14.1% |
| $100,000 to $150,000 | -$52.1 | -7.9% | 17.2% | 15.9% |
| $150,000 to $200,000 | -$46.7 | -8.0% | 19.8% | 18.2% |
| $200,000 to $500,000 | -$135.0 | -8.1% | 24.3% | 22.3% |
| $500,000 to $1,000,000 | -$64.3 | -10.2% | 29.9% | 26.8% |
| $1,000,000 and Above | -$87.6 | -7.6% | 30.8% | 28.3% |
| Total, All Taxpayers | -$447.8 | -8.2% | 20.8% | 19.1% |
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $2.4 | 49.4% | 3.1% | 4.7% |
| $15,000 to $30,000 | $1.0 | 4.7% | 3.4% | 3.5% |
| $30,000 to $40,000 | -$3.6 | -7.6% | 6.7% | 6.2% |
| $40,000 to $50,000 | -$6.2 | -8.4% | 9.1% | 8.3% |
| $50,000 to $60,000 | -$9.5 | -9.0% | 11.3% | 10.3% |
| $60,000 to $80,000 | -$22.8 | -8.6% | 13.1% | 12.0% |
| $80,000 to $100,000 | -$24.5 | -8.1% | 15.5% | 14.2% |
| $100,000 to $150,000 | -$51.4 | -7.2% | 17.1% | 15.8% |
| $150,000 to $200,000 | -$43.3 | -6.9% | 19.7% | 18.3% |
| $200,000 to $500,000 | -$105.7 | -5.8% | 24.3% | 22.9% |
| $500,000 to $1,000,000 | -$57.1 | -8.5% | 29.9% | 27.3% |
| $1,000,000 and Above | -$77.5 | -6.5% | 30.7% | 28.6% |
| Total, All Taxpayers | -$398.1 | -6.8% | 20.7% | 19.3% |
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $2.8 | 56.1% | 3.0% | 4.7% |
| $15,000 to $30,000 | $1.1 | 4.6% | 3.6% | 3.8% |
| $30,000 to $40,000 | -$4.2 | -8.1% | 6.8% | 6.3% |
| $40,000 to $50,000 | -$6.3 | -8.1% | 8.9% | 8.2% |
| $50,000 to $60,000 | -$10.0 | -8.9% | 11.1% | 10.1% |
| $60,000 to $80,000 | -$25.3 | -8.8% | 13.1% | 12.0% |
| $80,000 to $100,000 | -$26.9 | -8.1% | 15.5% | 14.2% |
| $100,000 to $150,000 | -$55.5 | -7.1% | 17.0% | 15.7% |
| $150,000 to $200,000 | -$46.5 | -6.8% | 19.6% | 18.2% |
| $200,000 to $500,000 | -$113.6 | -5.7% | 24.4% | 23.0% |
| $500,000 to $1,000,000 | -$57.3 | -7.9% | 30.0% | 27.6% |
| $1,000,000 and Above | -$76.7 | -6.0% | 30.6% | 28.7% |
| Total, All Taxpayers | -$418.2 | -6.6% | 20.7% | 19.3% |
Show the same estimate measured against the current policy baseline (JCX-36-25)
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $2.8 | 70.8% | 2.8% | 4.7% |
| $15,000 to $30,000 | $6.0 | 46.0% | 2.2% | 3.2% |
| $30,000 to $40,000 | $2.3 | 6.1% | 5.7% | 6.1% |
| $40,000 to $50,000 | $0.8 | 1.2% | 8.2% | 8.3% |
| $50,000 to $60,000 | -$0.9 | -1.0% | 10.4% | 10.3% |
| $60,000 to $80,000 | -$3.0 | -1.3% | 12.1% | 11.9% |
| $80,000 to $100,000 | -$3.7 | -1.4% | 14.3% | 14.1% |
| $100,000 to $150,000 | -$8.2 | -1.3% | 16.1% | 15.9% |
| $150,000 to $200,000 | -$9.2 | -1.7% | 18.5% | 18.2% |
| $200,000 to $500,000 | -$34.7 | -2.2% | 22.8% | 22.3% |
| $500,000 to $1,000,000 | -$9.0 | -1.6% | 27.2% | 26.8% |
| $1,000,000 and Above | -$23.1 | -2.1% | 29.0% | 28.3% |
| Total, All Taxpayers | -$79.9 | -1.6% | 19.4% | 19.1% |
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $3.3 | 84.3% | 2.5% | 4.7% |
| $15,000 to $30,000 | $7.0 | 45.0% | 2.4% | 3.5% |
| $30,000 to $40,000 | $2.5 | 6.2% | 5.8% | 6.2% |
| $40,000 to $50,000 | $0.9 | 1.3% | 8.2% | 8.3% |
| $50,000 to $60,000 | -$0.8 | -0.8% | 10.3% | 10.3% |
| $60,000 to $80,000 | -$2.1 | -0.9% | 12.1% | 12.0% |
| $80,000 to $100,000 | -$2.7 | -1.0% | 14.3% | 14.2% |
| $100,000 to $150,000 | -$4.3 | -0.6% | 15.9% | 15.8% |
| $150,000 to $200,000 | -$3.6 | -0.6% | 18.4% | 18.3% |
| $200,000 to $500,000 | $1.6 | 0.1% | 22.9% | 22.9% |
| $500,000 to $1,000,000 | -$0.9 | -0.1% | 27.3% | 27.3% |
| $1,000,000 and Above | -$10.8 | -1.0% | 28.8% | 28.6% |
| Total, All Taxpayers | -$9.9 | -0.2% | 19.3% | 19.3% |
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $3.8 | 98.7% | 2.4% | 4.7% |
| $15,000 to $30,000 | $7.6 | 43.0% | 2.6% | 3.8% |
| $30,000 to $40,000 | $2.3 | 5.1% | 6.0% | 6.3% |
| $40,000 to $50,000 | $1.0 | 1.5% | 8.1% | 8.2% |
| $50,000 to $60,000 | -$0.9 | -0.8% | 10.2% | 10.1% |
| $60,000 to $80,000 | -$3.0 | -1.1% | 12.1% | 12.0% |
| $80,000 to $100,000 | -$3.2 | -1.0% | 14.3% | 14.2% |
| $100,000 to $150,000 | -$5.1 | -0.7% | 15.9% | 15.7% |
| $150,000 to $200,000 | -$4.4 | -0.7% | 18.4% | 18.2% |
| $200,000 to $500,000 | $2.3 | 0.1% | 23.0% | 23.0% |
| $500,000 to $1,000,000 | $0.7 | 0.1% | 27.5% | 27.6% |
| $1,000,000 and Above | -$7.6 | -0.6% | 28.8% | 28.7% |
| Total, All Taxpayers | -$6.3 | -0.1% | 19.4% | 19.3% |
Joint Committee on Taxation, JCX-36-25, July 29, 2025: Distribution of the estimated revenue effects relative to the current policy baseline of the tax provisions in Public Law 119-21. See its official page · Open our saved copy · Saved October 8, 2026 · Fingerprint 81b95a0a0d4c2968
Joint Committee on Taxation, JCX-35-25, July 1, 2025: Estimated revenue effects, relative to the present law baseline, of the tax provisions in Title VII of the bill as the Senate passed it (JCX-35-25). See its official page · Open our saved copy · Saved October 8, 2026 · Fingerprint b33299c3d829aa38
The table in this file is printed in a way a rule cannot read with certainty. Our copy is saved and linked. No number from it is shown.
Estimate: 2025 income tax with and without this law
EstimateThe change Public Law 119-21 makes to the standard deduction for tax year 2025. The 2025 tax rate tables are the same with and without the law.
Nothing typed here is stored or logged. With scripts on, this browser works out the estimate and sends nothing.
| Filing status | Under the law | Without it |
|---|---|---|
| Married filing jointly, or surviving spouse | $31,500 | $30,000 |
| Head of household | $23,625 | $22,500 |
| Single | $15,750 | $15,000 |
| Married filing separately | $15,750 | $15,000 |
Internal Revenue Service, Rev. Proc. 2024-40, November 4, 2024: Revenue Procedure 2024-40, Internal Revenue Bulletin 2024-45: tax rate tables and standard deduction for tax year 2025, as the law stood on October 22, 2024. See its official page · Open our saved copy · Saved October 8, 2026 · Fingerprint 3f72cb99cc257c41
Internal Revenue Service, Rev. Proc. 2025-32, November 3, 2025: Revenue Procedure 2025-32, Internal Revenue Bulletin 2025-45: changes to the 2025 items of Revenue Procedure 2024-40 made by Public Law 119-21. See its official page · Open our saved copy · Saved October 8, 2026 · Fingerprint cc4022d0c545db20
How the estimate is worked out, and what it leaves out
- Taxable income = income before the standard deduction, minus the standard deduction (never below zero).
- Income tax = the amount the 2025 tax rate table gives for that taxable income.
- Difference = income tax under the law minus income tax without it.
The estimate leaves out:
- the added deduction for people 65 and older or blind, and the law's new deduction for seniors
- the law's new deductions for tips, overtime pay and car loan interest
- the child tax credit and every other credit
- itemized deductions, including the limit on the deduction for State and local taxes
- capital gains and qualified dividends, which have their own rates
- the alternative minimum tax, payroll taxes and State taxes
- every change that starts in tax year 2026 or later
For taxable income under $100,000 the tax table of the Internal Revenue Service works in $50 steps, so the tax on a return can differ from this estimate by a few dollars.
Where this comes from
The provisions are read from our own saved copy of the law. The code beside it is its fingerprint, a short code that changes if the file’s contents change.
Read from: Public Law 119-21, official text · Saved October 5, 2026 · Fingerprint 84000b07c382db50
How we read a law for this section
- A provision is one sentence of the law that says a part of a tax law "is amended" or "is repealed". The words are quoted from our saved copy of the law. Words inside text the law inserts into another law are not read as provisions.
- A sentence counts when it names the Internal Revenue Code of 1986 or title 26 of the United States Code; when it says "such Code" and the last Code named in that section of the law is the Internal Revenue Code of 1986; when the law says that its amendments are to be read as amendments to the Internal Revenue Code of 1986 and the sentence names no other law; or when the sentence names no law at all and the amending sentence before it, in the same section of the law, amended the Internal Revenue Code of 1986.
- A sentence that amends the Harmonized Tariff Schedule of the United States or the Tariff Act of 1930 is listed under "Tariffs and customs duties".
- The tax type comes from the number of the Code section the sentence names. Sections 1 to 5, 21 to 26, 32, 35, 36, 36B, 62, 63, 67, 68, 151 to 153 and 211 to 224 apply to individuals: "Individual income tax". Sections 11, 12, 59A, 241 to 250, 301 to 385, 531 to 565 and 1501 to 1564 apply to corporations: "Corporate income tax". Every other section from 1 to 1400Z and 1411 to 1564 is "Income tax, individuals and businesses". Sections 1401 to 1403 and 3101 to 3512: "Payroll taxes". Sections 2001 to 2801: "Estate and gift taxes". Sections 4001 to 5891: "Excise taxes". Every other section, such as the rules on returns, penalties and trust funds: "Other tax law".
- A sentence that names a chapter or subtitle of the Code and no section is sorted by that chapter or subtitle. A sentence that adds a new section is sorted by the new section's number.
- "Old and new" is shown only where the law says both: "striking X and inserting Y". Other dollar amounts and percentages in the sentence are listed as printed.
- A change to a table of contents or a change headed "Conforming" or "Clerical" is listed apart.
- A law reads "This law changes no tax" only when our saved copy reaches the end of the law, no sentence above is found, the text does not name the Internal Revenue Code of 1986, the Internal Revenue Service, the Harmonized Tariff Schedule of the United States, a tariff, a duty or a named tax, and the margin of the official print cites title 26 of the United States Code nowhere.
- Nothing here says how much tax anyone pays. That takes figures the law's text does not state.