Tracking Tax Reform in 2025
The Republican Party’s control over government and the expiration of the Tax Cuts and Jobs Act (TCJA) provisions at the end of 2025 means that major tax legislation is likely in 2025. Congress must also consider additional tax cut proposals and promises from President Donald Trump. Negotiations will likely to prove difficult, meaning that everything is on the table for tax policy in 2025. This page provides an overview of the key issues for tax reform.
One Big Beautiful Bill
The House of Representatives passed a reconciliation bill on May 22, 2025 that cuts taxes, cuts spending, and increases border security and defense spending. The bill extends the expiring tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA), makes changes to corporate and international taxes, and reduces energy tax credits. The bill also reduces spending on social safety net programs, including Medicaid and the Supplemental Nutrition Assistance Program (SNAP), by more than $1 trillion; and raises the debt ceiling by $4 trillion. The Congressional Budget Office projects that the bill would add $2.4 trillion to the national debt over 10 years (the debt currently exceeds $36 trillion).
The Senate Finance Committee on June 16, 2025 released proposed legislation for a reconciliation bill that largely reflects the House bill but includes key changes. Like the House bill, the Senate version increases border security and defense spending. It also extends the expiring TCJA tax cuts, makes changes to corporate and international taxes, and reduces energy tax credits. The Senate bill requires $4 billion in spending cuts with the goal of $2 trillion in cuts. The Senate bill raises the debt ceiling by $5 trillion. Notably, the Senate bill uses a “current policy baseline” approach for calculating the cost of the bill.
Click here to see comparisons of the key tax provisions in both the House and Senate bills.
Energy Tax Credits
Click here to see comparisons of the proposed changes to the energy tax credits in both the House and Senate bills.