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Each provision below is one sentence of the law that says a part of a federal tax law is amended or repealed.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 70512: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT (c)Other tax law
Amends section 7701(a) of the Internal Revenue Code of 1986.
“Section 7701(a) is amended by adding at the end the following new paragraphs: ``(51) Prohibited foreign entity.-- ``(A) In general.-- ``(i) Definition.--The term `prohibited foreign entity' means a specified foreign entity or a foreign-influenced entity. ``(ii) Determination.-- ``(I) In general.--Subject to subclause (II), for any taxable year, the determination as to whether an entity is a specified foreign entity or foreign-influenced entity shall be made as of the last day of such taxable year.”
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 70512: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT (h)Other tax law
Amends section 6418(g) of the Internal Revenue Code of 1986.
“Section 6418(g) is amended by adding at the end the following new paragraph: ``(5) Prohibition on transfer of credits to specified foreign entities.--With respect to any eligible credit described in clause (iii), (iv), (vi), (vii), (viii), or (xi) of subsection (f)(1)(A), an eligible taxpayer may not elect to transfer any portion of such credit to a taxpayer that is a specified foreign entity (as defined in section 7701(a)(51)(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 70512: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT (i)Other tax law
Amends section 6501 of the Internal Revenue Code of 1986.
“Section 6501 is amended-- (1) by redesignating subsection (o) as subsection (p), and (2) by inserting after subsection (n) the following new subsection: ``(o) Material Assistance From a Prohibited Foreign Entity.--In the case of a deficiency attributable to an error with respect to the determination under section 7701(a)(52) for any taxable year, such deficiency may be assessed at any time within 6 years after the return for such year was filed.''.”
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 (j)Other tax law
Amends section 6662 of the Internal Revenue Code of 1986.
“Section 6662 is amended by adding at the end the following new subsection: ``(m) Substantial Understatement of Income Tax Due to Disallowance of Applicable Energy Credits.-- ``(1) In general.--In the case of a taxpayer for which there is a disallowance of an applicable energy credit for any taxable year, for purposes of determining whether there is a substantial understatement of income tax for such taxable year, subsection (d)(1) shall be applied-- ``(A) in subparagraphs (A) and (B), by substituting `1 percent' for `10 percent' each place it appears, and ``(B) without regard to subparagraph (C).”
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 (j)Other tax law
Amends section 6417(d)(6) of the Internal Revenue Code of 1986.
“Section 6417(d)(6) is amended by adding at the end the following new subparagraph: ``(D) Disallowance of an applicable energy credit.-- In the case of an applicable entity which made an election under subsection (a) with respect to an applicable credit for which there is a disallowance described in section 6662(m)(2), subparagraph (A) shall apply with respect to any excessive payment resulting from such disallowance.''.”
Effective date, in the law’s words (subsection (l)): “(1) In general.--Except as provided in paragraphs (2), (3), and (4), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Material assistance from prohibited foreign entities.-- The amendments made by subsection (b)(1) shall apply to facilities for which construction begins after December 31, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70512: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT (k)Other tax law
Adds section 6695B to the Internal Revenue Code of 1986: PENALTY FOR SUBSTANTIAL MISSTATEMENTS ON CERTIFICATION PROVIDED BY SUPPLIER.
“Part I of subchapter B of chapter 68 is amended by inserting after section 6695A the following new section: ``SEC. 6695B. PENALTY FOR SUBSTANTIAL MISSTATEMENTS ON CERTIFICATION PROVIDED BY SUPPLIER. ``(a) Imposition of Penalty.--If-- ``(1) a person-- ``(A) provides a certification described in clause (iii)(II)(bb) of section 7701(a)(52)(D) with respect to any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component, and ``(B) knows, or reasonably should have known, that the certification would be used in connection with a determination under such section, ``(2) such person knows, or reasonably should have known, that such”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (l)): “(1) In general.--Except as provided in paragraphs (2), (3), and (4), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. (2) Material assistance from prohibited foreign entities.-- The amendments made by subsection (b)(1) shall apply to facilities for which construction begins after December 31, 2025.” The quote stops here.
- Title VII, Subtitle A, Section 70512: TERMINATION AND RESTRICTIONS ON CLEAN ELECTRICITY PRODUCTION CREDIT (k)Other tax law
Amends section 6696 of the Internal Revenue Code of 1986.
“Section 6696 is amended-- (i) in the heading, by striking ``and 6695a'' and inserting ``6695a, and 6695b'', (ii) in subsections (a), (b), and (e), by striking ``and 6695A'' each place it appears and inserting ``6695A, and 6695B'', (iii) in subsection (c), by striking ``or 6695A'' and inserting ``6695A, or 6695B'', and (iv) in subsection (d)-- (I) in paragraph (1), by inserting ``(or, in the case of any penalty under section 6695B, 6 years)'' after ``assessed within 3 years'', and (II) in paragraph (2), by inserting ``(or, in the case of any claim for refund of an overpayment of any penalty assessed under section 6695B, 6 years)'' after ``filed within 3 years''. (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 (b)Other tax law
Amends section 6418(g)(3) of the Internal Revenue Code of 1986.
“Section 6418(g)(3) is amended by striking ``subsection (a)(5)'' each place it appears and inserting ``subsection (a)(7)''.”
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).”
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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”
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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.”
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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:”
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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”
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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''.”
- Title VII, Subtitle A, Section 70521: EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT (e)Income tax, individuals and businesses
Amends section 45Z(d)(5) of the Internal Revenue Code of 1986.
“Section 45Z(d)(5) is amended-- (1) in subparagraph (A)-- (A) in clause (ii), by striking ``and'' at the end, (B) in clause (iii), by striking the period at the end and inserting ``, and'', and (C) by adding at the end the following new clause: ``(iv) is not produced from a fuel for which a credit under this section is allowable.'', and (2) by adding at the end the following new subparagraph: ``(C) Regulations and guidance.--The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of subparagraph (A)(iv).''.”
- Title VII, Subtitle A, Section 70521: EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT (f)Income tax, individuals and businesses
Amends section 45Z(f)(3) of the Internal Revenue Code of 1986.
“Section 45Z(f)(3) is amended by adding at the end the following: ``The Secretary may prescribe additional related person rules similar to the rule described in the preceding sentence for entities which are not described in such sentence, including rules for related persons with respect to which the taxpayer has reason to believe will sell fuel to an unrelated person in a manner described in subsection (a)(4).''.”
- Title VII, Subtitle A, Section 70521: EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT (g)Other tax law
Amends section 6426(k) of the Internal Revenue Code of 1986.
“Section 6426(k) is amended by adding at the end the following new paragraph: ``(4) Coordination of credits.--With respect to any gallon of sustainable aviation fuel in a qualified mixture, this subsection shall not apply to any such gallon for which a credit under section 45Z is allowable (as determined without regard to subsection (a)(1)(A) of such section).''.”
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 (g)Income tax, individuals and businesses
Amends section 45Z(a) of the Internal Revenue Code of 1986.
“Paragraph (3) of section 45Z(a) is amended to read as follows: ``(3) Definition of sustainable aviation fuel.--For purposes of this section, the term `sustainable aviation fuel' means liquid fuel, the portion of which is not kerosene, which is sold for use in an aircraft and which-- ``(A) meets the requirements of-- ``(i) ASTM International Standard D7566, or ``(ii) the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, and ``(B) is not derived from palm fatty acid distillates or petroleum.''. (B) Conforming amendment.--”
- Title VII, Subtitle A, Section 70521: EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT (g)Income tax, individuals and businesses
Amends section 45Z(c)(1) of the Internal Revenue Code of 1986.
Old New , the $1.00 amount in subsection (a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii) and the $1.00 amount in subsection (a)(2)(B) “Section 45Z(c)(1) is amended by striking ``, the $1.00 amount in subsection (a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii)'' and inserting ``and the $1.00 amount in subsection (a)(2)(B)''. (C) Effective date.--The amendments made by this paragraph shall apply to fuel produced after December 31, 2025.”
- Title VII, Subtitle A, Section 70521: EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT (h)Other tax law
Amends section 6426(k) of the Internal Revenue Code of 1986.
“Section 6426(k), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: ``(5) Termination.--This subsection shall not apply to any sale or use for any period after September 30, 2025.''.”
- Title VII, Subtitle A, Section 70521: EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT (j)Income tax, individuals and businesses
Amends section 40A of the Internal Revenue Code of 1986.
Old New 10 cents 20 cents “Section 40A is amended-- (A) in subsection (b)(4)-- (i) in subparagraph (A), by striking ``10 cents'' and inserting ``20 cents'', (ii) in subparagraph (B), by inserting ``in a manner which complies with the requirements under section 45Z(f)(1)(A)(iii)'' after ``produced by an eligible small agri-biodiesel producer'', and (iii) by adding at the end the following new subparagraph:”
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 (j)Other tax law
Amends section 6418(f)(1)(A) of the Internal Revenue Code of 1986.
“Section 6418(f)(1)(A) is amended by adding at the end the following new clause: ``(xii) So much of the biodiesel fuels credit determined under section 40A which consists of the small agri-biodiesel producer credit determined under subsection (b)(4) of such section.''. (3) Effective date.--The amendments made by this subsection shall apply to fuel sold or used after June 30, 2025.”
- Title VII, Subtitle A, Section 70521: EXTENSION AND MODIFICATION OF CLEAN FUEL PRODUCTION CREDIT (k)Income tax, individuals and businesses
Amends section 45Z(f) of the Internal Revenue Code of 1986.
“Section 45Z(f) is amended by adding at the end the following new paragraph: ``(8) 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.
- Title VII, Subtitle A, Section 70522: RESTRICTIONS ON CARBON OXIDE SEQUESTRATION CREDIT (a)Income tax, individuals and businesses
Amends section 45Q(f) of the Internal Revenue Code of 1986.
“Section 45Q(f) is amended by adding at the end the following new paragraph: ``(10) Restrictions relating to prohibited foreign entities.--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) a specified foreign entity (as defined in section 7701(a)(51)(B)), or ``(B) a foreign-influenced entity (as defined in section 7701(a)(51)(D), determined without regard to clause (i)(II) thereof).''.”
Effective date, in the law’s words (subsection (d)): “(1) Restrictions relating to prohibited foreign entities.-- The amendment made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. (2) Parity for different uses and utilizations of qualified carbon oxide.--The amendments made subsections (b) and (c) shall apply to facilities or equipment placed in service after the date of enactment of this Act.”
- Title VII, Subtitle A, Section 70522: RESTRICTIONS ON CARBON OXIDE SEQUESTRATION CREDIT (b)Income tax, individuals and businesses
Amends section 45Q of the Internal Revenue Code of 1986.
“Section 45Q is amended-- (1) in subsection (a)-- (A) in paragraph (2)(B)(ii), by adding ``and'' at the end, (B) in paragraph (3), by striking subparagraph (B) and inserting the following: ``(B)(i) disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in clause (ii) or (iii), ``(ii) used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project and disposed of by the taxpayer in secure geological storage, or ``(iii) utilized by the taxpayer in a manner described in subsection (f)(5).'', and (C) by striking paragraph (4), (2) in subsection (b)-- (A) in paragraph (1)-- (i) by striking subparagraph (A) and”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (d)): “(1) Restrictions relating to prohibited foreign entities.-- The amendment made by subsection (a) shall apply to taxable years beginning after the date of enactment of this Act. (2) Parity for different uses and utilizations of qualified carbon oxide.--The amendments made subsections (b) and (c) shall apply to facilities or equipment placed in service after the date of enactment of this Act.”
- Title VII, Subtitle A, Section 70523: INTANGIBLE DRILLING AND DEVELOPMENT COSTS TAKEN INTO ACCOUNT FOR PURPOSES OF COMPUTING ADJUSTED FINANCIAL STATEMENT INCOME (a)Income tax, individuals and businesses
Amends section 56A(c)(13) of the Internal Revenue Code of 1986.
“Section 56A(c)(13) is amended-- (1) by striking subparagraph (A) and inserting the following: ``(A) reduced by-- ``(i) depreciation deductions allowed under section 167 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the year, and ``(ii) any deduction allowed for expenses under section 263(c) (including any deduction for such expenses under section 59(e) or 291(b)(2)) with respect to property described therein to the extent of the amount allowed as deductions in computing taxable income for the year, and'', and (2) by striking subparagraph (B)(i) and inserting the following:”
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 December 31, 2025.”
- Title VII, Subtitle A, Section 70524: INCOME FROM HYDROGEN STORAGE, CARBON CAPTURE, ADVANCED NUCLEAR, HYDROPOWER, AND GEOTHERMAL ENERGY ADDED TO QUALIFYING INCOME OF CERTAIN PUBLICLY TRADED PARTNERSHIPS (a)Other tax law
Amends section 7704(d)(1)(E) of the Internal Revenue Code of 1986.
“Section 7704(d)(1)(E) is amended-- (1) by striking ``income and gains derived from the exploration'' and inserting the following: ``income and gains derived from-- ``(i) the exploration''. (2) by inserting ``or'' before ``industrial source'', and (3) by striking ``or the transportation or storage'' and all that follows and inserting the following:”
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 December 31, 2025.”
- Title VII, Subtitle A, Section 70525: ALLOW FOR PAYMENTS TO CERTAIN INDIVIDUALS WHO DYE FUEL (a)Other tax law
Adds section 6435 to the Internal Revenue Code of 1986: DYED FUEL.
“Subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: ``SEC. 6435. DYED FUEL. ``(a) In General.--If a person establishes to the satisfaction of the Secretary that such person meets the requirements of subsection (b) with respect to diesel fuel or kerosene, then the Secretary shall pay to such person an amount (without interest) equal to the tax described in subsection (b)(2)(A) with respect to such diesel fuel or kerosene.”
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 eligible indelibly dyed diesel fuel or kerosene removed on or after the date that is 180 days after the date of the enactment of this section. Subchapter C--Other Reforms”
- Title VII, Subtitle A, Section 70531: MODIFICATIONS TO DE MINIMIS ENTRY PRIVILEGE FOR COMMERCIAL SHIPMENTS (a)Tariffs and customs duties
Amends section 321 of the Tariff Act of 1930.
“Section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) is amended by adding at the end the following new subsection: ``(c) Any person who enters, introduces, facilitates, or attempts to introduce an article into the United States using the privilege of this section, the importation of which violates any other provision of United States customs law, shall be assessed, in addition to any other penalty permitted by law, a civil penalty of up to $5,000 for the first violation and up to $10,000 for each subsequent violation.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect 30 days after the date of the enactment of this Act.”
- Title VII, Subtitle A, Section 70601: MODIFICATION AND EXTENSION OF LIMITATION ON EXCESS BUSINESS LOSSES OF NONCORPORATE TAXPAYERS (a)Income tax, individuals and businesses
Amends section 461(l)(1) of the Internal Revenue Code of 1986.
“Section 461(l)(1) is amended by striking ``and before January 1, 2029,'' each place it appears.”
Effective date, in the law’s words (subsection (c)): “(1) Rule made permanent.--The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2026. (2) Adjustment of amounts for calculation of excess business loss.--The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2025.”
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.