House Ways and Means Releases First Portion of Tax Legislation in Anticipation of May 13 Mark-up

The House Ways and Means committee released the first portion of their tax bill on May 9, 2025. The released provisions mostly focus on the expiring provisions in the Tax Cuts and Jobs Act. More legislation will likely be released before the committee markup, but it is not required to be. Notably, this released text does not contain the anticipated changes to the SALT deduction limitation or revival of IRC Sec. 174, bonus depreciation, and IRC Sec. 163(j). It also does not contain any of the expected revenue raisers.  

The legislation as written would: 

• Permanently extend the individual rates from the TCJA, with some modifications to inflation adjustments for the 35% and 37% tax brackets.
• Permanently extend the increased standard deduction, with a further increased amounts of $2,000 (joint filers), $1,500 (head of household), and $1,000 (all others) for tax years 2025-2028.
• Permanently increase the child tax credit, with a further increased amount of $2,500 for tax years 2025-2028.
• Permanently extend the 199A Qualified Business Income Deduction and increase the deduction to 22% from 20%.
• Permanently increase the estate and gift tax exemption to $15 million per taxpayer, adjusted annually for inflation, and repeal the provision doubling the previous $5 million amount. 
• Permanently increase the AMT exemption amount.
• Permanently extend the limitation on mortgage interest deductions and casualty losses. 

The legislation would also permanently repeal the miscellaneous itemized deduction, the limitation on itemized deductions, and the moving expenses deduction.  

The bill also addresses some international provisions, including: 

• Permanently extending the FDII and GILTI deductions at their current rates,
• Permanently extending the BEAT amount currently in effect, and
• Modify the de minimis threshold for imported goods and who qualifies. 

This is just the first portion of a much larger package. More information will be released in the coming days and weeks. As the bill goes through markup and the Senate, changes will likely be made. Our professionals are following the legislative process very closely. Watch for further information.