Senate Tax Bill: What You Need To Know About The Latest Version of the “One Big Beautiful Bill”
On June 16, 2025, the Senate released its much-anticipated version of the One Big Beautiful Bill Act (OBBBA)—a sweeping tax package that significantly revises the House- approved version. This latest proposal introduces bold changes to individual and business tax provisions, with a looming July 4th deadline fast approaching.
Here’s what you need to know.
Individual Tax Provisions: Senate vs. House
Child Tax Credit (CTC)
- Senate: $2,200 per qualifying child
- House: $2,500 per qualifying child
Enhanced Senior Tax Deduction
- Senate: $6,000 additional deduction (2025–2028)
- House: $4,000 additional deduction (2025–2028)
SALT Deduction CapBonus Depreciation
House: Temporary extension through 2030
Senate: Makes 100% bonus depreciation permanent
- Senate: Keeps the $10,000 SALT cap
- House: Raises cap to $40,000 across all filing statuses with income limits up to
$250K/$500K
Business Tax Provisions: Senate Makes Them Permanent
Section 199A Deduction (Pass-Throughs)
- Senate: Makes the 20% qualified business income deduction permanent and
increases the rate to 23%
R&D Expensing (Section 174)
- Senate: Restores full expensing permanently
- House: Only restores expensing through 2030
Business Interest Deduction (Section 163(j))
- Senate: Permanently reinstates EBITDA-based limitation
- House: Only restores EBITDA for 2025–2028
Bonus Depreciation
- Senate: Makes 100% bonus depreciation permanent
- House: Temporary extension through 2030
Green Energy Credits: Slower Phase-Out
- Senate: Extends and slows down IRA credit phase-outs (ITC, PTC, nuclear/geothermal)
- House: Quicker phase out of IRA credits
Legislative Process & Timeline
- Target Passage: Senate Republicans aim to finalize before July 4th
- Reconciliation Required: House must re-vote on Senate changes
Bottom Line for Taxpayers
The Senate’s version of OBBBA offers major wins for business taxpayers through permanent provisions—but introduces tighter rules and limitations for individual taxpayers especially related to SALT.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Tax laws and proposals are subject to change. Always consult a licensed tax professional before acting on legislative developments. This article is based upon the legislative proposal as of June 24th 2025.
