This morning the Senate passed their version of the One Big, Beautiful Bill Act that mirrors much of the House’s bill (H.R. 1) in terms of the tax provisions. However, there are differences in some of the provisions that will have to be resolved. Some of the key differences include:
- Although both versions would increase the SALT limitation to $40,000, the House version, but not the Senate version, would place restrictions on the SALT limitation for passthrough entity owners;
- The House version would increase the IRC §199A deduction to 23%, while the Senate version would keep it at 20%;
- The House version provides for a temporary senior bonus deduction of $4,000, while in the Senate version the deduction is $6,000; and
- The House version would only temporarily reinstate 100% bonus depreciation, full expensing of IRC §174 research expenses, and easing of the business interest limitation, whereas the Senate version would make these changes permanent.
The fastest path for the House to take to meet President Trump’s self-imposed July 4 deadline is for the House to pass the Senate version of the bill. It is unclear whether this is the course of action the House will take or if they will seek a compromise bill that will require an additional vote before both the House and Senate. We will continue to provide updates with the latest developments.
The latest version of the bill is available at:
www.caltax.com/files/2025/taxbilldraft4.pdf
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