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.
Income tax, individuals and businesses: each provision, in the law’s order
Each provision below is one sentence of the law that says a part of a federal tax law is amended or repealed.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 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (b)Income tax, individuals and businesses
Amends section 1202(b)(3) of the Internal Revenue Code of 1986.
“Subparagraph (A) of section 1202(b)(3) is amended to read as follows: ``(A) Separate returns.--In the case of a separate return by a married individual for any taxable year-- ``(i) paragraph (4)(A) shall be applied by substituting `$5,000,000' for `$10,000,000', and ``(ii) paragraph (4)(B) shall be applied by substituting one-half of the dollar amount in effect under such paragraph for the taxable year for the amount so in effect.''. (4) 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 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (c)Income tax, individuals and businesses
Amends section 1202(d)(1) of the Internal Revenue Code of 1986.
Old New $50,000,000 $75,000,000 “Subparagraphs (A) and (B) of section 1202(d)(1) are each amended by striking ``$50,000,000'' and inserting ``$75,000,000''. (2) Inflation adjustment.--”
- Title VII, Subtitle A, Section 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (c)Income tax, individuals and businesses
Amends section 1202(b) of the Internal Revenue Code of 1986.
“Section 1202(b) is amended by adding at the end the following: ``(4) Inflation adjustment.--In the case of any taxable year beginning after 2026, the $75,000,000 amounts in paragraphs (1)(A) and (1)(B) shall each be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under this paragraph is not a multiple of $10,000, such increase shall be rounded to the nearest multiple of $10,000.''.”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle A, Section 70434: TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING PRODUCTIONS (a)Income tax, individuals and businesses
Amends section 181(a)(1) of the Internal Revenue Code of 1986.
“Section 181(a)(1) is amended by striking ``qualified film or television production, and any qualified live theatrical production,'' and inserting ``qualified film or television production, any qualified live theatrical production, and any qualified sound recording production''.”
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 (b)Income tax, individuals and businesses
Amends section 181(a)(2) of the Internal Revenue Code of 1986.
“Section 181(a)(2) is amended by adding at the end the following new subparagraph: ``(C) Qualified sound recording production.-- Paragraph (1) shall not apply to so much of the aggregate cost of any qualified sound recording production, or to so much of the aggregate, cumulative cost of all such qualified sound recording productions in the taxable year, as exceeds $150,000.''.”
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 (c)Income tax, individuals and businesses
Amends section 181(b) of the Internal Revenue Code of 1986.
“Section 181(b) is amended by striking ``qualified film or television production or any qualified live theatrical production'' and inserting ``qualified film or television production, any qualified live theatrical production, or any qualified sound recording production''.”
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 (d)Income tax, individuals and businesses
Amends section 181(c)(1) of the Internal Revenue Code of 1986.
“Section 181(c)(1) is amended by striking ``qualified film or television production or any qualified live theatrical production'' and inserting ``qualified film or television production, any qualified live theatrical production, or any qualified sound recording production''.”
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 (e)Income tax, individuals and businesses
Amends section 181 of the Internal Revenue Code of 1986.
“Section 181 is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection: ``(f) Qualified Sound Recording Production.--For purposes of this section, the term `qualified sound recording production' means a sound recording (as defined in section 101 of title 17, United States Code) produced and recorded in the United States.''.”
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 (f)Income tax, individuals and businesses
Amends section 181(h) of the Internal Revenue Code of 1986.
“Section 181(h), as redesignated by subsection (e), is amended by striking ``qualified film and television productions or qualified live theatrical productions'' and inserting ``qualified film and television productions, qualified live theatrical productions, or qualified sound recording 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 70434: TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING PRODUCTIONS (g)Income tax, individuals and businesses
Amends section 168(k)(2)(A)(i) of the Internal Revenue Code of 1986.
“Section 168(k)(2)(A)(i) is amended-- (A) by striking ``or'' at the end of subclause (IV), by inserting ``or'' at the end of subclause (V), and by inserting after subclause (V) the following: ``(VI) which is a qualified sound recording production (as defined in subsection (f) of section 181) for which a deduction would have been allowable under section 181 without regard to subsections (a)(2) and (h) of such section or this subsection, and'', and (B) in subclauses (IV) and (V) (as so amended) by striking ``without regard to subsections (a)(2) and (g)'' both places it appears and inserting ``without regard to subsections (a)(2) and (h)''. (2) Production placed in service.--”
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 (g)Income tax, individuals and businesses
Amends section 168(k)(2)(H) of the Internal Revenue Code of 1986.
“Section 168(k)(2)(H) is amended by striking ``and'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting ``, and'', and by adding after clause (ii) the following: ``(iii) a qualified sound recording production shall be considered to be placed in service at the time of initial release or broadcast.''.”
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 (a)Income tax, individuals and businesses
Adds section 139L to the Internal Revenue Code of 1986: INTEREST ON LOANS SECURED BY RURAL OR AGRICULTURAL REAL PROPERTY.
“Part III of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 139K the following new section: ``SEC. 139L. INTEREST ON LOANS SECURED BY RURAL OR AGRICULTURAL REAL PROPERTY. ``(a) In General.--Gross income shall not include 25 percent of the interest received by a qualified lender on any qualified real estate loan. ``(b) Qualified Lender.--For purposes of this section, the term `qualified lender' means-- ``(1) any bank or savings association the deposits of which are insured under the Federal Deposit Insurance Act (12 U.S.C.”
The quote stops here. The law’s text has the rest.
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 70437: TREATMENT OF CAPITAL GAINS FROM THE SALE OF CERTAIN FARMLAND PROPERTY (a)Income tax, individuals and businesses
Adds section 1062 to the Internal Revenue Code of 1986: GAIN FROM THE SALE OR EXCHANGE OF QUALIFIED FARMLAND PROPERTY TO QUALIFIED FARMERS.
“Part IV of subchapter O of chapter 1 is amended by redesignating section 1062 as section 1063 and by inserting after section 1061 the following new section: ``SEC. 1062. GAIN FROM THE SALE OR EXCHANGE OF QUALIFIED FARMLAND PROPERTY TO QUALIFIED FARMERS. ``(a) Election to Pay Tax in Installments.--In the case of gain from the sale or exchange of qualified farmland property to a qualified farmer, at the election of the taxpayer, the portion of the net income tax of such taxpayer for the taxable year of the sale or exchange which is equal to the applicable net tax liability shall be paid in 4 equal installments.”
The quote stops here. The law’s text has the rest.
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 70439: RESTORATION OF TAXABLE REIT SUBSIDIARY ASSET TEST (a)Income tax, individuals and businesses
Amends section 856(c)(4)(B)(ii) of the Internal Revenue Code of 1986.
Old New 20 percent 25 percent “Section 856(c)(4)(B)(ii) is amended by striking ``20 percent'' and inserting ``25 percent''.”
Effective date, in the law’s words (subsection (b)): “The amendment made by this section shall apply to taxable years beginning after December 31, 2025. CHAPTER 5--ENDING GREEN NEW DEAL SPENDING, PROMOTING AMERICA-FIRST ENERGY, AND OTHER REFORMS Subchapter A--Termination of Green New Deal Subsidies”
- Title VII, Subtitle A, Section 70502: TERMINATION OF CLEAN VEHICLE CREDIT (a)Income tax, individuals and businesses
Amends section 30D(h) of the Internal Revenue Code of 1986.
“Section 30D(h) is amended by striking ``placed in service after December 31, 2032'' and inserting ``acquired after September 30, 2025''.”
- Title VII, Subtitle A, Section 70503: TERMINATION OF QUALIFIED COMMERCIAL CLEAN VEHICLES CREDITIncome tax, individuals and businesses
Amends section 45W(g) of the Internal Revenue Code of 1986.
“Section 45W(g) is amended by striking ``December 31, 2032'' and inserting ``September 30, 2025''.”
- Title VII, Subtitle A, Section 70504: TERMINATION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDITIncome tax, individuals and businesses
Amends section 30C(i) of the Internal Revenue Code of 1986.
“Section 30C(i) is amended by striking ``December 31, 2032'' and inserting ``June 30, 2026''.”
- Title VII, Subtitle A, Section 70507: TERMINATION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTIONIncome tax, individuals and businesses
Amends section 179D of the Internal Revenue Code of 1986.
“Section 179D is amended by adding at the end the following new subsection: ``(i) Termination.--This section shall not apply with respect to property the construction of which begins after June 30, 2026.''.”
- Title VII, Subtitle A, Section 70508: TERMINATION OF NEW ENERGY EFFICIENT HOME CREDITIncome tax, individuals and businesses
Amends section 45L(h) of the Internal Revenue Code of 1986.
“Section 45L(h) is amended by striking ``December 31, 2032'' and inserting ``June 30, 2026''.”
- Title VII, Subtitle A, Section 70509: TERMINATION OF COST RECOVERY FOR ENERGY PROPERTY (a)Income tax, individuals and businesses
Amends section 168(e)(3)(B)(vi) of the Internal Revenue Code of 1986.
“Section 168(e)(3)(B)(vi), as amended by section 13703 of Public Law 117-169, is amended-- (1) by striking subclause (I), and (2) by redesignating subclauses (II) and (III) as subclauses (I) and (II), respectively.”
Effective date, in the law’s words (subsection (b)): “The amendments made by subsection (a) shall apply to property the construction of which begins after December 31, 2024.”
- Title VII, Subtitle A, Section 70510: MODIFICATIONS OF ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT (a)Income tax, individuals and businesses
Amends section 45U(c) of the Internal Revenue Code of 1986.
“Section 45U(c) is amended by adding at the end the following new paragraph: ``(3) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)).”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (b)): “The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.”
- Title VII, Subtitle A, Section 70511: TERMINATION OF CLEAN HYDROGEN PRODUCTION CREDITIncome tax, individuals and businesses
Amends section 45V(c)(3)(C) of the Internal Revenue Code of 1986.
“Section 45V(c)(3)(C) is amended by striking ``January 1, 2033'' and inserting ``January 1, 2028''.”
- Title VII, Subtitle A, Section 70512: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT (a)Income tax, individuals and businesses
Amends section 45Y(d) of the Internal Revenue Code of 1986.
“Section 45Y(d) is amended-- (1) in paragraph (1), by striking ``The amount of'' and inserting ``Subject to paragraph (4), the amount of'', and (2) by striking paragraph (3) and inserting the following new paragraphs: ``(3) Applicable year.--For purposes of this subsection, the term `applicable year' means calendar year 2032. ``(4) Termination for wind and solar facilities.-- ``(A) In general.--This section shall not apply with respect to any applicable facility placed in service after December 31, 2027.”
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 (b)Income tax, individuals and businesses
Amends section 45Y of the Internal Revenue Code of 1986.
“Section 45Y is amended-- (1) in subsection (b)(1), by adding at the end the following new subparagraph: ``(E) Material assistance from prohibited foreign entities.--The term `qualified facility' shall not include any facility for which construction begins after December 31, 2025, if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).'', and (2) in subsection (g), by adding at the end the following new paragraph:”
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 (d)Income tax, individuals and businesses
Amends section 45Y of the Internal Revenue Code of 1986.
“Section 45Y is amended by adding at the end the following new subsection: ``(h) Denial of Credit for Wind and Solar Leasing Arrangements.--No credit shall be determined under this section with respect to any production of electricity during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.''.”
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 (e)Income tax, individuals and businesses
Amends section 45Y(b)(2)(C) of the Internal Revenue Code of 1986.
“Section 45Y(b)(2)(C) is amended by adding at the end the following new clause: ``(iii) Existing studies.--For purposes of clause (i), in determining greenhouse gas emissions rates for types or categories of facilities for the purpose of determining whether a facility satisfies the requirements under paragraph (1), the Secretary shall consider studies published on or before the date of enactment of this clause which demonstrate a net lifecycle greenhouse gas emissions rate which is not greater than zero using widely accepted lifecycle assessment concepts, such as concepts described in standards developed by the International Organization for Standardization.''.”
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 (f)Income tax, individuals and businesses
Amends section 45(b)(11) of the Internal Revenue Code of 1986.
“Section 45(b)(11) is amended-- (A) in subparagraph (B)-- (i) in clause (ii)(II), by striking ``or'' at the end, (ii) in clause (iii)(II), by striking the period at the end and inserting ``, or'', and (iii) by adding at the end the following new clause: ``(iv) for purposes of any qualified facility which is an advanced nuclear facility, a metropolitan statistical area which has (or, at any time during the period beginning after December 31, 2009, had) 0.17 percent or greater direct employment related to the advancement of nuclear power, including employment related to-- ``(I) an advanced nuclear facility, ``(II) advanced nuclear power research and development, ``(III) nuclear fuel cycle”
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 (f)Income tax, individuals and businesses
Amends section 48E(a)(3)(A)(i) of the Internal Revenue Code of 1986.
“Section 48E(a)(3)(A)(i) is amended by inserting ``, as applied without regard to clause (iv) thereof'' after ``section 45(b)(11)(B)''.”
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 70513: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT (a)Income tax, individuals and businesses
Amends section 48E(e) of the Internal Revenue Code of 1986.
“Section 48E(e) is amended-- (1) in paragraph (1), by striking ``The amount of'' and inserting ``Subject to paragraph (4), the amount of'', and (2) by adding at the end the following new paragraph: ``(4) Termination for wind and solar facilities.-- ``(A) In general.--This section shall not apply to any qualified property placed in service by the taxpayer after December 31, 2027, which is part of an applicable facility.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (g)): “(1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70513: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT (b)Income tax, individuals and businesses
Amends section 48E of the Internal Revenue Code of 1986.
“Section 48E is amended-- (A) in subsection (b)-- (i) by redesignating paragraph (6) as paragraph (7), and (ii) by inserting after paragraph (5) the following new paragraph: ``(6) Material assistance from prohibited foreign entities.--The terms `qualified facility' and `qualified interconnection property' shall not include any facility or property the construction, reconstruction, or erection of which begins after December 31, 2025, if the construction, reconstruction, or erection of such facility or property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).'', and (B) in subsection (c), by adding at the end the following new paragraph:”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (g)): “(1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70513: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT (b)Income tax, individuals and businesses
Amends section 48E(d) of the Internal Revenue Code of 1986.
“Section 48E(d) is amended by adding at the end the following new paragraph: ``(6) Restrictions relating to prohibited foreign entities.-- ``(A) In general.--No credit shall be determined under subsection (a) for any taxable year if the taxpayer is-- ``(i) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(ii) a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof).”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (g)): “(1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70513: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT (b)Income tax, individuals and businesses
Amends section 50(a) of the Internal Revenue Code of 1986.
“Section 50(a) is amended-- (i) by redesignating paragraphs (4) through (6) as paragraphs (5) through (7), respectively, (ii) by inserting after paragraph (3) the following new paragraph: ``(4) Payments to prohibited foreign entities.-- ``(A) In general.--If there is an applicable payment made by a specified taxpayer before the close of the 10-year period beginning on the date such taxpayer placed in service investment credit property which is eligible for the clean electricity investment credit under section 48E(a), then the tax under this chapter for the taxable year in which such applicable payment occurs shall be increased by 100 percent of the aggregate decrease in the credits allowed”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (g)): “(1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70513: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT (b)Income tax, individuals and businesses
Amends section 1371(d)(1) of the Internal Revenue Code of 1986.
“Section 1371(d)(1) is amended by striking ``section 50(a)(5)'' and inserting ``section 50(a)(6)''. (ii)”
Effective date, in the law’s words (subsection (g)): “(1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70513: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT (c)Income tax, individuals and businesses
Amends section 48E of the Internal Revenue Code of 1986.
“Section 48E is amended-- (A) by redesignating subsection (i) as subsection (j), and (B) by inserting after subsection (h) the following new subsection: ``(i) Denial of Credit for Expenditures for Wind and Solar Leasing Arrangements.--No credit shall be determined under this section for any qualified investment during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.''. (2) Conforming rules.--”
Effective date, in the law’s words (subsection (g)): “(1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70513: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT (c)Income tax, individuals and businesses
Amends section 50 of the Internal Revenue Code of 1986.
“Section 50 is amended by adding at the end the following new subsection: ``(e) Rules for Geothermal Heat Pumps.-- For purposes of this section and section 168, the ownership of energy property described in section 48(a)(3)(A)(vii) shall be determined without regard to whether such property is readily usable by a person other than the lessee or service recipient.''.”
Effective date, in the law’s words (subsection (g)): “(1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70513: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT (d)Income tax, individuals and businesses
Amends section 48E(a)(3) of the Internal Revenue Code of 1986.
“Subparagraph (B) of section 48E(a)(3) is amended to read as follows: ``(B) Domestic content.--Rules similar to the rules of section 48(a)(12) shall apply, except that, for purposes of subparagraph (B) of such section and the application of rules similar to the rules of section 45(b)(9)(B), the adjusted percentage (as determined under section 45(b)(9)(C)) shall be determined as follows: ``(i) In the case of any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins before June 16, 2025, 40 percent (or, in the case of a qualified facility which is an offshore wind facility, 20 percent).”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (g)): “(1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70513: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT (e)Income tax, individuals and businesses
Amends section 48(a)(2) of the Internal Revenue Code of 1986.
Old New 2 percent 0 percent “Section 48(a)(2) is amended-- (1) in subparagraph (A)(ii), by striking ``2 percent'' and inserting ``0 percent'', and (2) by adding at the end the following new subparagraph: ``(C) Nonapplication of increases to energy percentage.--For purposes of energy property described in subparagraph (A)(ii), the energy percentage applicable to such property pursuant to such subparagraph shall not be increased or otherwise adjusted by any provision of this section.''.”
Effective date, in the law’s words (subsection (g)): “(1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70513: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY INVESTMENT CREDIT (f)Income tax, individuals and businesses
Amends section 48E of the Internal Revenue Code of 1986.
“Section 48E, as amended by subsection (c), is amended-- (1) by redesignating subsection (j) as subsection (k), and (2) by inserting after subsection (i) the following new subsection: ``(j) Application to Qualified Fuel Cell Property.--For purposes of this section, in the case of any qualified fuel cell property (as defined in section 48(c)(1), as applied without regard to subparagraph (E) thereof)-- ``(1) subsection (b)(3)(A) shall be applied without regard to clause (iii) thereof, ``(2) for purposes of subsection (a)(1), the applicable percentage shall be 30 percent and such percentage shall not be increased or otherwise adjusted by any other provision of this section, and ``(3) subsection”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (g)): “(1) In general.--Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Domestic content rules.--The amendment made by subsection (d) shall apply on or after June 16, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70514: PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING PRODUCTION CREDIT (a)Income tax, individuals and businesses
Amends section 45X(d) of the Internal Revenue Code of 1986.
“Paragraph (4) of section 45X(d) is amended to read as follows: ``(4) Sale of integrated components.-- ``(A) In general.--For purposes of this section, a person shall be treated as having sold an eligible component to an unrelated person if-- ``(i) such component (referred to in this paragraph as the `primary component') is integrated, incorporated, or assembled into another eligible component (referred to in this paragraph as the `secondary component') produced within the same manufacturing facility as the primary component, and ``(ii) the secondary component is sold to an unrelated person.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (f)): “(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Modification of provision relating to sale of integrated components.--The amendment made by subsection (a) shall apply to components sold during taxable years beginning after December 31, 2026.”
- Title VII, Subtitle A, Section 70514: PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING PRODUCTION CREDIT (b)Income tax, individuals and businesses
Amends section 45X(b)(3) of the Internal Revenue Code of 1986.
“Section 45X(b)(3) is amended-- (1) in the heading, by inserting ``and termination'' after ``Phase out'', (2) in subparagraph (A), in the matter preceding clause (i), by striking ``subparagraph (C)'' and inserting ``subparagraphs (C) and (D)'', and (3) by striking subparagraph (C) and inserting the following:”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (f)): “(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Modification of provision relating to sale of integrated components.--The amendment made by subsection (a) shall apply to components sold during taxable years beginning after December 31, 2026.”
- Title VII, Subtitle A, Section 70514: PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING PRODUCTION CREDIT (c)Income tax, individuals and businesses
Amends section 45X of the Internal Revenue Code of 1986.
“Section 45X is amended-- (1) in subsection (c)(1), by adding at the end the following new subparagraph: ``(C) Material assistance from prohibited foreign entities.--In the case of taxable years beginning after the date of enactment of this subparagraph, the term `eligible component' shall not include any property which includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52), as applied by substituting `used in a product sold before January 1, 2027' for `used in a product sold before January 1, 2030' in subparagraph (D)(iv)(II)(bb) thereof).'', and (2) in subsection (d), as amended by subsection (a) of this section, by adding at the end the”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (f)): “(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Modification of provision relating to sale of integrated components.--The amendment made by subsection (a) shall apply to components sold during taxable years beginning after December 31, 2026.”
- Title VII, Subtitle A, Section 70514: PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING PRODUCTION CREDIT (d)Income tax, individuals and businesses
Amends section 45X(c)(5)(B)(iii) of the Internal Revenue Code of 1986.
“Section 45X(c)(5)(B)(iii) is amended-- (1) in subclause (I)(bb), by striking ``and'' at the end, (2) in subclause (II), by striking the period at the end and inserting ``, and'', and (3) by adding at the end the following new subclause: ``(III) which is comprised of all other essential equipment needed for battery functionality, such as current collector assemblies and voltage sense harnesses, or any other essential energy collection equipment.''.”
Effective date, in the law’s words (subsection (f)): “(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Modification of provision relating to sale of integrated components.--The amendment made by subsection (a) shall apply to components sold during taxable years beginning after December 31, 2026.”
- Title VII, Subtitle A, Section 70514: PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING PRODUCTION CREDIT (e)Income tax, individuals and businesses
Amends section 45X(c)(6) of the Internal Revenue Code of 1986.
“Section 45X(c)(6) is amended-- (A) by redesignating subparagraphs (R) through (Z) as subparagraphs (S) through (AA), respectively, and (B) by inserting after subparagraph (Q) the following new subparagraph: ``(R) Metallurgical coal.--Metallurgical coal which is suitable for use in the production of steel (within the meaning of the notice published by the Department of Energy entitled `Critical Material List; Addition of Metallurgical Coal Used for Steelmaking' (90 Fed. Reg. 22711 (May 29, 2025))), regardless of whether such production occurs inside or outside of the United States.''. (2) Credit amount.--”
Effective date, in the law’s words (subsection (f)): “(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Modification of provision relating to sale of integrated components.--The amendment made by subsection (a) shall apply to components sold during taxable years beginning after December 31, 2026.”
- Title VII, Subtitle A, Section 70514: PHASE-OUT AND RESTRICTIONS ON ADVANCED MANUFACTURING PRODUCTION CREDIT (e)Income tax, individuals and businesses
Amends section 45X(b)(1)(M) of the Internal Revenue Code of 1986.
“Section 45X(b)(1)(M) is amended by inserting ``(2.5 percent in the case of metallurgical coal)'' after ``10 percent''.”
Effective date, in the law’s words (subsection (f)): “(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Modification of provision relating to sale of integrated components.--The amendment made by subsection (a) shall apply to components sold during taxable years beginning after December 31, 2026.”
- Title VII, Subtitle A, Section 70515: RESTRICTION ON THE EXTENSION OF ADVANCED ENERGY PROJECT CREDIT PROGRAM (a)Income tax, individuals and businesses
Amends section 48C(e)(3)(C) of the Internal Revenue Code of 1986.
“Section 48C(e)(3)(C) is amended by striking ``shall be increased'' and inserting ``shall not be increased''.”
Effective date, in the law’s words (subsection (b)): “The amendment made by this section shall take effect on the date of enactment of this Act. Subchapter B--Enhancement of America-first Energy Policy”
- Title VII, Subtitle A, Section 70521: EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT (a)Income tax, individuals and businesses
Amends section 45Z(f)(1)(A) of the Internal Revenue Code of 1986.
“Section 45Z(f)(1)(A) is amended-- (A) in clause (i)(II)(bb), by striking ``and'' at the end, (B) in clause (ii), by striking the period at the end and inserting ``, and'', and (C) by adding at the end the following new clause: ``(iii) such fuel is exclusively derived from a feedstock which was produced or grown in the United States, Mexico, or Canada.''. (2) Effective date.--The amendments made by this subsection shall apply to transportation fuel produced after December 31, 2025.”
- Title VII, Subtitle A, Section 70521: EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT (b)Income tax, individuals and businesses
Amends section 45Z(b)(1) of the Internal Revenue Code of 1986.
“Section 45Z(b)(1) is amended-- (A) by striking subparagraph (C) and inserting the following: ``(C) Rounding of emissions rate.--The Secretary may round the emissions rates under subparagraph (B) to the nearest multiple of 5 kilograms of CO2e per mmBTU.'', and (B) by adding at the end the following new subparagraph: ``(E) Prohibition on negative emission rates.--For purposes of this section, the emissions rate for a transportation fuel may not be less than zero.''. (2) Effective date.--The amendments made by this subsection shall apply to emissions rates published for transportation fuel produced after December 31, 2025.”
- Title VII, Subtitle A, Section 70521: EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT (c)Income tax, individuals and businesses
Amends section 45Z(b)(1)(B) of the Internal Revenue Code of 1986.
“Section 45Z(b)(1)(B) is amended by adding at the end the following new clauses: ``(iv) Exclusion of indirect land use changes.--Notwithstanding clauses (i), (ii), and (iii), the emissions rate shall be adjusted as necessary to exclude any emissions attributed to indirect land use change. Any such adjustment shall be based on regulations or methodologies determined by the Secretary.”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle A, Section 70521: EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT (c)Income tax, individuals and businesses
Amends section 45Z(b)(1)(B)(i) of the Internal Revenue Code of 1986.
“Section 45Z(b)(1)(B)(i) is amended by striking ``clauses (ii) and (iii)'' and inserting ``clauses (ii), (iii), (iv), and (v)''. (3) Effective date.--The amendments made by this subsection shall apply to emissions rates published for transportation fuel produced after December 31, 2025.”
- Title VII, Subtitle A, Section 70521: EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT (d)Income tax, individuals and businesses
Amends section 45Z(g) of the Internal Revenue Code of 1986.
“Section 45Z(g) is amended by striking ``December 31, 2027'' and inserting ``December 31, 2029''.”
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.