Congress passes and President Trump signs “One Big Beautiful Bill.” The bill includes extension of 2017 tax cuts, spending cuts (Medicaid and green energy spending), deregulation, energy reform, immigration reform, and a debt ceiling increase of $5 trillion (625.34)
- The bill extends 2017 tax cuts for all income levels with an increased standard deduction. Tax cuts will be made permanent.
- The bill eliminates taxes on tips and overtime through 2028 with some income limits.
- The bill increases deductions for seniors on Social Security by $4000.
- The bill makes permanent write-offs for business interest expenses and R&D.
- The bill provides $170 billion for border security, construction of a border wall, and deportations.
- The bill requires most solar and wind projects to be placed in service by 2027 to qualify for tax credits, with some carveouts for projects that get started by July of 2026 (the excise tax on solar & wind projects was removed from the bill).
- Nuclear power credits will last until 2036. Hydrogen tax credits will be phased out in 2028.
- EV tax credits will end in September of 2025.
- The bill starts Medicaid work requirements beginning in December of 2026. The Medicaid provider tax will drop to 3.5% by 2028.
- The bill creates a $50 billion fund for rural hospitals.
- The bill makes auto loan interest tax deductible.
- The bill will limit gambling loss write-offs for recreational gamblers to 90% of winnings for that tax year (previous deduction was allowed at 100% of winnings).
- The bill raises the debt ceiling by $5 trillion.
- The bill raises the state and local tax deduction to $40,000 for people making $500K or less. SALT cap will go back to $10K after 5 years.
- The bill makes changes to the IRS free tax filing program, pending review by a task force.
- The bill includes tax on college endowments and private foundations.
- The bill requires states to share the cost of some SNAP benefits.
- The bill limits how much students can borrow from the government for college.
- The bill includes reforms for how pharmacy benefit managers do business with the government.
- The bill creates a new savings account for children, and $1000 of funding will be provided.
- The bill provides new tax credits for nuclear energy.
- The bill will provide billions for the construction of the "Golden Dome" missile defense shield.
- The bill raises the child tax credit to $2200 from $2000.
- The bill provides additional money for air traffic control and some other defense programs.
- The bill provides additional tax credits for semiconductor companies that build capacity in the U.S.
Full Bill Text
Deficit Impact: The CBO said that the Senate bill will add $3.3 trillion to deficits over the next 10 years. The CBO "estimates that enacting the substitute amendment would increase by 11.8 million the number of people without health insurance in 2034. That amount includes an estimated 1.4 million people without verified citizenship, nationality, or satisfactory immigration status who would no longer be covered in state-only funded programs in 2034."
Deficit Impact: The CBO said that the Senate bill will add $3.3 trillion to deficits over the next 10 years. The CBO "estimates that enacting the substitute amendment would increase by 11.8 million the number of people without health insurance in 2034. That amount includes an estimated 1.4 million people without verified citizenship, nationality, or satisfactory immigration status who would no longer be covered in state-only funded programs in 2034."
Related stocks: TAN, FSLR, SPWR, CSIQ, SUN, NEE, GEV, CWEN, CHPT, EVGO, BLNK, TSLA, RIVN, F, GM, STLA, HMC, TM, FSR, LCID, CXW, GEO, UNH, HUM, CNC, CVS, ALHC, MOH, CI, ELV, THC, UHS, CYH, HCA, HRB, INTU, SAH, CVNA, AN, PAG, GPI, NLR, CCJ, URA, CAE, GD, LMT, NOC, LHX, LIN, APD, PLUG, BE, TOL, LEN, DHI, NVR, CZR, MGM, WYNN, LVS, DKNG, FLUT, PENN, DG, DLTR, FIVE, WMT, SOFI, SLM, SMH, AMD, INTC, AVGO, TSM, AVGO