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.
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Each provision below is one sentence of the law that says a part of a federal tax law is amended or repealed.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 70426: 1-PERCENT FLOOR ON DEDUCTION OF CHARITABLE CONTRIBUTIONS MADE BY CORPORATIONS (b)Income tax, individuals and businesses
Amends section 170(d)(2) of the Internal Revenue Code of 1986.
“Section 170(d)(2) is amended to read as follows: ``(2) Corporations.-- ``(A) In general.--Any charitable contribution taken into account under subsection (b)(2)(A) for any taxable year which is not allowed as a deduction by reason of clause (ii) thereof shall be taken into account as a charitable contribution for the succeeding taxable year, except that, for purposes of determining under this subparagraph whether such contribution is allowed in such succeeding taxable year, contributions in such succeeding taxable year (determined without regard to this paragraph) shall be taken into account under subsection (b)(2)(A) before any contribution taken into account by reason of this paragraph.”
The quote stops here. The law’s text has the rest.
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 70427: PERMANENT INCREASE IN LIMITATION ON COVER OVER OF TAX ON DISTILLED SPIRITS (a)Other tax law
Amends section 7652(f) of the Internal Revenue Code of 1986.
“Paragraph (1) of section 7652(f) is amended to read as follows: ``(1) $13.25, or''.”
Effective date, in the law’s words (subsection (b)): “The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2025.”
- Title VII, Subtitle A, Section 70429: ADJUSTMENT OF CHARITABLE DEDUCTION FOR CERTAIN EXPENSES INCURRED IN SUPPORT OF NATIVE ALASKAN SUBSISTENCE WHALING (a)Income tax, individuals and businesses
Amends section 170(n)(1) of the Internal Revenue Code of 1986.
Old New $10,000 $50,000 “Section 170(n)(1) of the Internal Revenue Code of 1986 is amended by striking ``$10,000'' and inserting ``$50,000''.”
Effective date, in the law’s words (subsection (b)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70430: EXCEPTION TO PERCENTAGE OF COMPLETION METHOD OF ACCOUNTING FOR CERTAIN RESIDENTIAL CONSTRUCTION CONTRACTS (a)Income tax, individuals and businesses
Amends section 460(e) of the Internal Revenue Code of 1986.
“Section 460(e) is amended-- (1) in paragraph (1)-- (A) by striking ``home construction contract'' both places it appears and inserting ``residential construction contract'', and (B) by inserting ``(determined by substituting `3- year' for `2-year' in subparagraph (B)(i) for any residential construction contract which is not a home construction contract)'' after ``the requirements of clauses (i) and (ii) of subparagraph (B)'', (2) by striking paragraph (4) and redesignating paragraph (5) as paragraph (4), and (3) in subparagraph (A) of paragraph (4), as so redesignated, by striking ``paragraph (4)'' and inserting ``paragraph (3)''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to contracts entered into in taxable years beginning after the date of the enactment of this Act. Subchapter D--Permanent Investments in Small Business and Rural America”
- Title VII, Subtitle A, Section 70430: EXCEPTION TO PERCENTAGE OF COMPLETION METHOD OF ACCOUNTING FOR CERTAIN RESIDENTIAL CONSTRUCTION CONTRACTS (b)Income tax, individuals and businesses
Amends section 56(a)(3) of the Internal Revenue Code of 1986.
“Section 56(a)(3) is amended by striking ``any home construction contract (as defined in section 460(e)(6))'' and inserting ``any residential construction contract (as defined in section 460(e)(4))''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to contracts entered into in taxable years beginning after the date of the enactment of this Act. Subchapter D--Permanent Investments in Small Business and Rural America”
- Title VII, Subtitle A, Section 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (a)Income tax, individuals and businesses
Amends section 1202(a)(1) of the Internal Revenue Code of 1986.
“Section 1202(a)(1) is amended to read as follows: ``(1) In general.-- In the case of a taxpayer other than a corporation, gross income shall not include-- ``(A) except as provided in paragraphs (3) and (4), 50 percent of any gain from the sale or exchange of qualified small business stock acquired on or before the applicable date and held for more than 5 years, and ``(B) the applicable percentage of any gain from the sale or exchange of qualified small business stock acquired after the applicable date and held for at least 3 years.''. (2) Applicable percentage.--”
- Title VII, Subtitle A, Section 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (a)Income tax, individuals and businesses
Amends section 1202(a) of the Internal Revenue Code of 1986.
“Section 1202(a) is amended by adding at the end the following new paragraph: ``(5) Applicable percentage.--The applicable percentage under paragraph (1) shall be determined under the following table: Applicable ``Years stock held: percentage: 3 years................................................ 50% 4 years................................................ 75% 5 years or more........................................ 100%''. ''. (3) Applicable date; acquisition date.--”
- Title VII, Subtitle A, Section 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (a)Income tax, individuals and businesses
Amends section 1202(a) of the Internal Revenue Code of 1986.
“Section 1202(a), as amended by paragraph (2), is amended by adding at the end the following new paragraph: ``(6) Applicable date; acquisition date.--For purposes of this section-- ``(A) Applicable date.--The term `applicable date' means the date of the enactment of this paragraph. ``(B) Acquisition date.--In the case of any stock which would (but for this paragraph) be treated as having been acquired before, on, or after the applicable date, whichever is applicable, the acquisition date for purposes of this section shall be the first day on which such stock was held by the taxpayer determined after the application of section 1223.''.”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle A, Section 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (a)Income tax, individuals and businesses
Amends section 57(a)(7) of the Internal Revenue Code of 1986.
Old New An amount In the case of stock acquired on or before the date of the enactment of the Creating Small Business Jobs Act of 2010, an amount “Section 57(a)(7) is amended by striking ``An amount'' and inserting ``In the case of stock acquired on or before the date of the enactment of the Creating Small Business Jobs Act of 2010, an amount''. (B) Conforming amendment.--”
- Title VII, Subtitle A, Section 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (a)Income tax, individuals and businesses
Amends section 1202(a)(4) of the Internal Revenue Code of 1986.
“Section 1202(a)(4) is amended-- (i) by striking ``, and'' at the end of subparagraph (B) and inserting a period, and (ii) by striking subparagraph (C). (5) Other conforming amendments.-- (A)”
- Title VII, Subtitle A, Section 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (a)Income tax, individuals and businesses
Amends section 1202(a) of the Internal Revenue Code of 1986.
“Paragraphs (3)(A) and (4)(A) of section 1202(a) are each amended by striking ``paragraph (1)'' and inserting ``paragraph (1)(A)''. (B)”
- Title VII, Subtitle A, Section 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (a)Income tax, individuals and businesses
Amends section 1202(a) of the Internal Revenue Code of 1986.
“Paragraph (4)(A) of section 1202(a) is amended by inserting ``and on or before the applicable date'' after ``2010''. (C)”
- Title VII, Subtitle A, Section 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (a)Income tax, individuals and businesses
Amends sections 1202(b)(2), 1202(g)(2)(A), 1202(j)(1)(A) of the Internal Revenue Code of 1986.
“Sections 1202(b)(2), 1202(g)(2)(A), and 1202(j)(1)(A) are each amended by striking ``more than 5 years'' and inserting ``at least 3 years (more than 5 years in the case of stock acquired on or before the applicable date)''. (6) Effective dates.-- (A) In general.--Except as provided in subparagraph (B), the amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act. (B) Continued treatment as not item of tax preference.--The amendments made by paragraph (4) shall take effect as if included in the enactment of section 2011 of the Creating Small Business Jobs Act of 2010.”
- Title VII, Subtitle A, Section 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (b)Income tax, individuals and businesses
Amends section 1202(b)(1) of the Internal Revenue Code of 1986.
“Subparagraph (A) of section 1202(b)(1) is amended to read as follows: ``(A) the applicable dollar limit for the taxable year, or''. (2) Applicable dollar limit.--”
- Title VII, Subtitle A, Section 70431: EXPANSION OF QUALIFIED SMALL BUSINESS STOCK GAIN EXCLUSION (b)Income tax, individuals and businesses
Amends section 1202 of the Internal Revenue Code of 1986.
“Section 1202 (b) is amended by adding at the end the following: ``(4) Applicable dollar limit.--For purposes of paragraph (1)(A), the applicable dollar limit for any taxable year with respect to eligible gain from 1 or more dispositions by a taxpayer of qualified business stock of a corporation is-- ``(A) if such stock was acquired by the taxpayer on or before the applicable date, $10,000,000, reduced by the aggregate amount of eligible gain taken into account by the taxpayer under subsection (a) for prior taxable years and attributable to dispositions of stock issued by such corporation and acquired by the taxpayer before, on, or after the applicable date, and ``(B) if such stock was”
The quote stops here. The law’s text has the rest.
- 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 70432: REPEAL OF REVISION TO DE MINIMIS RULES FOR THIRD PARTY NETWORK TRANSACTIONS (a)Other tax law
Amends section 6050W(e) of the Internal Revenue Code of 1986.
“Section 6050W(e) is amended to read as follows: ``(e) Exception for De Minimis Payments by Third Party Settlement Organizations.--A third party settlement organization shall be required to report any information under subsection (a) with respect to third party network transactions of any participating payee only if-- ``(1) the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions exceeds $20,000, and ``(2) the aggregate number of such transactions exceeds 200.''. (2) Effective date.--The amendment made by this subsection shall take effect as if included in section 9674 of the American Rescue Plan Act.”
- Title VII, Subtitle A, Section 70432: REPEAL OF REVISION TO DE MINIMIS RULES FOR THIRD PARTY NETWORK TRANSACTIONS (b)Payroll taxes
Amends section 3406(b) of the Internal Revenue Code of 1986.
“Section 3406(b) is amended by adding at the end the following new paragraph: ``(8) Other reportable payments include payments in settlement of third party network transactions only where aggregate transactions exceed reporting threshold for the calendar year.-- ``(A) In general.--Any payment in settlement of a third party network transaction required to be shown on a return required under section 6050W which is made during any calendar year shall be treated as a reportable payment only if-- ``(i) the aggregate number of transactions with respect to the participating payee during such calendar year exceeds the number of transactions specified in section 6050W(e)(2), and ``(ii) the aggregate”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle A, Section 70433: INCREASE IN THRESHOLD FOR REQUIRING INFORMATION REPORTING WITH RESPECT TO CERTAIN PAYEES (a)Other tax law
Amends section 6041(a) of the Internal Revenue Code of 1986.
Old New $600 $2,000 “Section 6041(a) is amended by striking ``$600'' and inserting ``$2,000''.”
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 (b)Other tax law
Amends section 6041 of the Internal Revenue Code of 1986.
“Section 6041 is amended by adding at the end the following new subsection: ``(h) Inflation Adjustment.--In the case of any calendar year after 2026, the dollar amount in subsection (a) shall be increased by an amount equal to-- ``(1) such dollar amount, multiplied by ``(2) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. If any increase under the preceding sentence is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.''.”
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 (c)Other tax law
Amends section 6041A(a)(2) of the Internal Revenue Code of 1986.
“Section 6041A(a)(2) is amended by striking ``is $600 or more'' and inserting ``equals or exceeds the dollar amount in effect for such calendar year under section 6041(a)''.”
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 (d)Payroll taxes
Amends section 3406(b)(6) of the Internal Revenue Code of 1986.
Old New Only Where Aggregate for Calendar Year Is $600 or More Only Where in Excess of Threshold “Section 3406(b)(6) is amended-- (1) by striking ``$600'' in subparagraph (A) and inserting ``the dollar amount in effect for such calendar year under section 6041(a)'', and (2) by striking ``Only Where Aggregate for Calendar Year Is $600 or More'' in the heading and inserting ``Only Where in Excess of Threshold''.”
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 (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 70436: REDUCTION OF TRANSFER AND MANUFACTURING TAXES FOR CERTAIN DEVICES (a)Excise taxes
Amends section 5811(a) of the Internal Revenue Code of 1986.
“Section 5811(a) is amended to read as follows: ``(a) Rate.--There shall be levied, collected, and paid on firearms transferred a tax at the rate of-- ``(1) $200 for each firearm transferred in the case of a machinegun or a destructive device, and ``(2) $0 for any firearm transferred which is not described in paragraph (1).''.”
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 70436: REDUCTION OF TRANSFER AND MANUFACTURING TAXES FOR CERTAIN DEVICES (b)Excise taxes
Amends section 5821(a) of the Internal Revenue Code of 1986.
“Section 5821(a) is amended to read as follows: ``(a) Rate.--There shall be levied, collected, and paid upon the making of a firearm a tax at the rate of-- ``(1) $200 for each firearm made in the case of a machinegun or a destructive device, and ``(2) $0 for any firearm made which is not described in paragraph (1).''.”
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 (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 70501: TERMINATION OF PREVIOUSLY-OWNED CLEAN VEHICLE CREDITIndividual income tax
Amends section 25E(g) of the Internal Revenue Code of 1986.
“Section 25E(g) is amended by striking ``December 31, 2032'' and inserting ``September 30, 2025''.”
- 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 70505: TERMINATION OF ENERGY EFFICIENT HOME IMPROVEMENT CREDIT (a)Individual income tax
Amends section 25C(h) of the Internal Revenue Code of 1986.
“Section 25C(h) is amended by striking ``placed in service'' and all that follows through ``December 31, 2032'' and inserting ``placed in service after December 31, 2025''.”
- Title VII, Subtitle A, Section 70506: TERMINATION OF RESIDENTIAL CLEAN ENERGY CREDIT (a)Individual income tax
Amends section 25D(h) of the Internal Revenue Code of 1986.
“Section 25D(h) is amended by striking ``to property placed in service after December 31, 2034'' and inserting ``with respect to any expenditures made after December 31, 2025''.”
- 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.
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.