On June 16, 2025, the Senate Finance Committee released their proposed tax package to be included in the Big Beautiful Bill. The draft proposals contain key reforms from the House of Representative’s tax proposals.
Please note: This version must still be approved by the Senate and then passed by the House of Representatives, as both chambers must pass identical legislation under reconciliation rules. It remains subject to change during Senate review and related negotiations with the House of Representatives.
| Provision | House Bill | Senate Bill |
|---|---|---|
| SALT Deduction | Increases SALT cap to $40,000 for adjusted gross income (AGI) under $500,000 | Maintains current $10,000 cap – This is a placeholder |
| 199A Passthrough Deduction | Increases the QBI deduction from 20% to 23% for certain pass-through income and makes permanent | Keeps the current 20% deduction , does not increase it, but makes it permanent and expands the phase in range for deduction limits |
| PTET SSTB-Specific Restrictions | Repeals pass-through entity tax (PTET) deduction for specified service trades or businesses (SSTBs) | Does not repeal or limit SSTBs’ ability to benefit from PTET. The Senate Bill applies PTET deduction limitations universally to all pass-through owners regardless of the type of business: – Individual owners can deduct their unused SALT cap , plus the greater of:1. $40,000 of their PTET allocation or ,2. 50% of their PTET allocation |
| Above-the-Line Charitable Deduction | Allows non-itemizing taxpayers to deduct up to $150/$300 (single/joint) in charitable cash contributions for tax years 2025 through 2028 | Allows non-itemizing taxpayers to deduct up to $1,000/$2,000 (single/joint) in charitable cash contributions and made permanent |
| Itemized Charitable Deduction | No AGI Floor as proposed in the Senate Plan. Both plans keep the various AGI limits under the current law intact | If you’re an itemizer, your charitable contributions are subject to a 0.5% “floor” based on your AGI. This means that only the portion of your giving that exceeds 0.5% of your AGI is deductible. |
| Business Tax Breaks (R&D, Interest, Equipment) | Temporary extensions until 2029 | Permanent extensions for:
i. R&D Deduction ii. Interest Deductibility (EBITDA) iii. Full Expensing for Equipment |
| Child Tax Credit | Temporary increase to $2,500 for tax years 2025 through 2028 | Permanent $2,200 credit starting in 2025 |
| Senior Deduction | $4,000 per filer 65+, phases out when AGI is above $75,000/$150,000 (single/joint) for tax years 2025 through 2028 | $6,000 per filer 65+, phases out when AGI is above $75,000/$150,000 (single/joint) for tax years 2025 through 2028 |
| Tips Deduction | Deduction for 100% of qualified tips, no cap, $160,000 individual AGI limit for tax years 2025 to 2028 | Deduction capped at $25,000 , phases out when AGI exceeds $150,000/$300,000 (single/joint) for tax years 2025 through 2028 |
| Overtime Deduction | Deduction for 100% of qualified overtime, no cap, $160,000 individual AGI limit for tax years 2025 through 2028 | $12,500 cap (or $25,000 for joint filers), phases out when AGI exceeds $150,000/$300,000 (single/joint) for tax years 2025 through 2028 |
| Bonus Depreciation | Temporarily reinstates 100% bonus depreciation for qualified property placed in service from January 19, 2025 through December 31, 2029 | Permanently restores 100% bonus depreciation (full expensing) for qualified property placed in service on or after January 19, 2025 |
| Excise Tax on Private Foundations | Creates a tiered excise tax on private foundations’ net investment income from 1.39% to 10% | Maintains existing flat rate. Private foundations continue to pay the current 1.39% excise tax on net investment income |
| Budget Offsets | Financed by borrowings | Cuts to federal Medicaid spending and other tax credits as offsets |
| Debt Ceiling Increase | $4 Trillion | $5 Trillion |
How we can help
If you have any questions regarding the proposed tax bill and how it could impact you or your business, feel free to contact your DDK partner.
The Rubin Report and DDK News will continue to carefully monitor the proposed bill’s progress and provide updates as it goes through reviews. Stay tuned for more information.
