On Friday, President Trump signed into law the “Big Beautiful Bill Act,” sweeping legislation that included many of his tax and domestic policy priorities. The U.S. House of Representatives passed the bill last Thursday in a narrow 218-214 vote, overcoming internal GOP divisions after intense negotiations led by Speaker Mike Johnson.

 

 

The final version of the bill mirrors the Senate-passed package and includes many key tax provisions that will benefit businesses and families by:

• • Making the tax cut for pass-throughs permanent.
  • Making the 100 percent bonus depreciation permanent.
  • Making the $15 million estate tax exemption permanent.
  • Increasing the Child Tax Credit to $2,200 and making it permanent.
  • Raising the standard deduction claimed by 90 percent of taxpayers.
  • Making the Family and Medical Leave credit permanent.
  • Creating a new deduction for tips and overtime pay.
  • Expanding school choice for parents by creating a new tax credit for contributions to scholarship organizations that help eligible K-12 students access the schools of their choosing.

 

Other provisions included in the bill include:

 

• A $5 trillion increase to the federal debt ceiling.
• Increased funding for border security and defense.
• Scaled-back clean energy tax credits.
• Medicaid reforms that shift more costs to states and implement work requirements for able-bodied adults who became Medicaid-eligible following passage of the Affordable Care Act – policies that drew criticism from moderates but were ultimately retained to secure conservative support.

 

PA Chamber President and CEO Luke Bernstein issued the following statement after the bill’s passage:

 

“Making the 2017 tax cuts permanent represents a significant victory for economic growth, investment, and job creation. This legislation provides the certainty employers need to compete and expand. Provisions like bonus depreciation, the R&D deduction, and the now-permanent small business deduction will drive innovation and accelerate economic momentum across Pennsylvania.

 

“This bill also delivers meaningful tax relief for working Americans and middle-class families — preventing what would have been the largest tax increase in history and helping more people keep what they earn. No legislation is perfect, but we shouldn’t let perfection stand in the way of progress. This bill will boost our economy and set the Commonwealth up for long-term success.

 

“We commend the members of the Pennsylvania congressional delegation and Senator McCormick who supported these pro-jobs provisions, as well as the Trump administration, for delivering a major policy achievement.”

 

The PA Chamber will continue to analyze the bill’s full implications and provide guidance to members on how to take advantage of the new tax provisions and regulatory changes.