TCJA Permanency Act
Sponsored By: Representative Buchanan
Introduced
Summary
Rewrite of individual income tax rates would remake brackets, reshape family tax benefits, and change rules for pass‑through businesses and the alternative minimum tax. The bill would permanently set new tax tables with inflation adjustments, overhaul the child tax credit and standard deduction framework, and make numerous conforming changes across the tax code.
Bill Overview
Analyzed Economic Effects
15 provisions identified: 7 benefits, 5 costs, 3 mixed.
Bigger child and dependent credits
If enacted, you could claim $2,000 per child under 17 and $500 for other dependents. The credit would phase out above $400,000 MAGI for joint filers ($200,000 others) at $50 per $1,000. A portion would be refundable (up to $1,400 per child to start), with inflation adjustments. Each child or dependent would need their name and SSN or TIN on your return. Rules would apply for tax years beginning after enactment.
Bigger standard deduction and add-ons
If enacted, standard deduction amounts would rise (for example, $18,000 and $12,000 replace prior amounts) and be indexed and rounded. Seniors (65+) and people who are blind would get an extra $600 each, per person. Each spouse could get their own $600 on a joint return; special rules apply if filing separately. These would start for tax years beginning after enactment.
Disaster and wagering loss deductions continue
If enacted, the temporary date limits would be removed. You could deduct qualified personal casualty losses from federally declared disasters in tax years after enactment. Wagering loss deduction rules would also continue beyond 2025. These apply to tax years starting after enactment.
Education savings and loan relief expanded
If enacted, ABLE account add‑on contributions could continue beyond 2025 and rollovers from 529 plans to ABLE accounts would be allowed. The Saver’s Credit could apply to ABLE contributions. 529 plans could pay more K‑12 and homeschool costs like tuition, books, qualified tutoring, and therapies (when rules are met). Also, certain student loan discharges after December 31, 2024 (including for death or total and permanent disability) would not be taxed.
Higher cap for cash charity gifts
If enacted, you could deduct cash gifts to public charities up to 60% of your contribution base. Any extra could be carried forward for up to five years. These rules would apply to tax years after enactment.
Mortgage interest limited to $750K debt
If enacted, interest would be deductible only on acquisition mortgage debt. New debt would be capped at $750,000 total ($375,000 MFS). Debt from on or before December 15, 2017 would keep a $1,000,000 cap ($500,000 MFS), with special rules for contracts and refinancing. Applies to tax years after enactment.
No miscellaneous itemized deductions
If enacted, miscellaneous itemized deductions (previously subject to the 2% AGI floor) would no longer be allowed for individuals. This would apply to tax years beginning after enactment.
Personal exemptions would be repealed
If enacted, the personal exemption deduction would end. Taxpayers who claimed exemptions for themselves or dependents would not be able to take them. The change would take effect upon enactment under related conforming rules.
SALT deduction capped at $10,000
If enacted, state and local tax deductions would be capped at $10,000 ($5,000 if married filing separately). Deductions for foreign real property taxes would not be allowed. This would apply to taxes paid for tax years beginning after enactment.
Moving expense break only for military
If enacted, moving‑expense deductions and reimbursements would be limited to active‑duty service members moving under orders. In‑kind moving and storage for these members or their families would not be taxed or reported. Civilian taxpayers would no longer qualify for this tax break after enactment.
New tax brackets and AMT rules
If enacted, income tax rates would use seven brackets (10% to 37%) with new thresholds and indexing. The 15% capital gains limit would be set at $479,000 for joint filers, $452,400 for heads of household, $425,800 for others, and $12,700 for estates and trusts (MFS is half the joint amount). AMT relief would grow: exemption amounts would rise (for example, to $109,400 and $70,300) and the phaseout would start at $1,000,000. The overall cap on itemized deductions would be repealed. You would need to file only if your gross income is above your standard deduction. Changes would apply to tax years beginning after enactment.
New limits for pass-through owners
If enacted, non‑corporate taxpayers could not use excess business losses to offset other income for the year. The bill would also remove one subsection of the pass‑through deduction law (section 199A), which is a technical change. Effects could vary by business. These changes would apply to tax years beginning after enactment.
Estate and gift exemption doubled
If enacted, the estate and gift tax exemption would rise from $5,000,000 to $10,000,000. This would apply to estates of decedents and gifts made after enactment. Very large estates and big gifts could owe less tax.
Bicycle commuting benefit would end
If enacted, employer bicycle‑commuting reimbursements could no longer be excluded from income. Workers who received this benefit would see a small increase in taxable income. This would apply to tax years after enactment.
Tax relief for Sinai service
If enacted, service in the Sinai Peninsula would qualify for special tax treatment when hostile‑fire or imminent‑danger pay is in effect. This would apply to services performed on or after enactment.
Sponsors & CoSponsors
Sponsor
Buchanan
FL • R
Cosponsors
Smith (NE)
NE • R
Sponsored 1/3/2025
LaHood
IL • R
Sponsored 1/3/2025
Estes
KS • R
Sponsored 1/3/2025
Miller (WV)
WV • R
Sponsored 1/3/2025
Kustoff
TN • R
Sponsored 1/3/2025
Tenney
NY • R
Sponsored 1/3/2025
Van Duyne
TX • R
Sponsored 1/3/2025
Feenstra
IA • R
Sponsored 1/3/2025
Carey
OH • R
Sponsored 1/3/2025
Yakym
IN • R
Sponsored 1/3/2025
Moran
TX • R
Sponsored 1/3/2025
Miller (OH)
OH • R
Sponsored 1/3/2025
Rutherford
FL • R
Sponsored 1/3/2025
Crenshaw
TX • R
Sponsored 1/3/2025
Guest
MS • R
Sponsored 1/3/2025
Moolenaar
MI • R
Sponsored 1/3/2025
Amodei (NV)
NV • R
Sponsored 1/3/2025
Fulcher
ID • R
Sponsored 1/3/2025
Ellzey
TX • R
Sponsored 1/3/2025
Grothman
WI • R
Sponsored 1/3/2025
Meuser
PA • R
Sponsored 1/3/2025
Clyde
GA • R
Sponsored 1/3/2025
Rouzer
NC • R
Sponsored 1/3/2025
Hinson
IA • R
Sponsored 1/3/2025
Rulli
OH • R
Sponsored 1/3/2025
Ezell
MS • R
Sponsored 1/3/2025
Bost
IL • R
Sponsored 1/3/2025
Barr
KY • R
Sponsored 1/3/2025
Weber (TX)
TX • R
Sponsored 1/3/2025
Carter (GA)
GA • R
Sponsored 1/3/2025
Green (TN)
TN • R
Sponsored 1/9/2025
Kelly (PA)
PA • R
Sponsored 1/9/2025
Nunn (IA)
IA • R
Sponsored 1/9/2025
Bean (FL)
FL • R
Sponsored 1/9/2025
Self
TX • R
Sponsored 1/15/2025
Williams (TX)
TX • R
Sponsored 1/22/2025
Downing
MT • R
Sponsored 1/22/2025
Lucas
OK • R
Sponsored 1/23/2025
Fallon
TX • R
Sponsored 1/23/2025
Moore (UT)
UT • R
Sponsored 1/23/2025
McCormick
GA • R
Sponsored 1/23/2025
Wagner
MO • R
Sponsored 1/23/2025
Moore (NC)
NC • R
Sponsored 1/23/2025
Finstad
MN • R
Sponsored 1/23/2025
Timmons
SC • R
Sponsored 1/23/2025
Mills
FL • R
Sponsored 1/28/2025
Stutzman
IN • R
Sponsored 1/31/2025
Houchin
IN • R
Sponsored 1/31/2025
Thompson (PA)
PA • R
Sponsored 2/7/2025
Van Drew
NJ • R
Sponsored 2/18/2025
Hurd (CO)
CO • R
Sponsored 2/18/2025
McGuire
VA • R
Sponsored 2/25/2025
Fine
FL • R
Sponsored 12/9/2025
Roll Call Votes
No roll call votes available for this bill.
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