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Congress Passes Budget Bill

The House passed the Senate's reconciliation package 218–214, sending it to President Trump, who plans to sign it tomorrow morning.

Just moments ago, the US House voted to accept the changes and version created by the US Senate for their budget reconciliation package, dubbed "The One Big Beautiful Bill Act." The final vote was 218-214, with all but two Republicans (Fitzpatrick-PA and Massie-KY) voting in favor of the final bill and all Democrats voting against. The legislation now heads to President Trump for his signature right before his self-imposed deadline of Independence Day. TRALA has learned that President Trump plans to sign the bill into law tomorrow at 9 am in an official signing ceremony.

 

You may view the entire legislation by clicking on the 887 page text here.

 

The final bill makes 100 percent bonus depreciation permanent. For net interest expensing, the legislation would return to the prior calculation for determining how much net interest can be deducted. EBITA, which stands for earnings before interest, taxes, depreciation, and amortization, measures a company's long-term financial health and profitability. As part of the 2017 Trump Tax Bill, EBITDA was made the standard but only for a specific number of years due to the fiscal score involved. In 2022, EBITDA was replaced with EBIT, which meant earnings before interest and taxes with no deprecation or amortization could be included. The final package makes EBITDA permanent and is poised to benefit capital-intensive sectors such as the truck renting and leasing industry.

 

In addition, the final bill would allow for pass-through tax entities to have an exemption of 20 percent, helping all companies that are taxed at individual rates rather than the traditional C-corporation rates, which include the vast majority of TRALA members. This exemption is being made permanent in the final bill.

 

There are several other tax provisions included in the final legislation including making permanent several 2017 Trump tax cuts such as capping the top individual rate at 37%.

 

TRALA applauds both Chambers for the work they have put into the reconciliation process. TRALA had preferred and lobbied for the Senate version due to the permanency of key tax items that would give more future clarity for companies to plan and invest and TRALA is grateful to Congress for seeing the value in this approach.

 

 If you have any questions about this final reconciliation legislation, please contact Jake Jacoby at jjacoby@trala.org or Lori Prater at lprater@trala.org