House Republicans Pass Budget Framework to Extend 2017 Tax Cuts: What Business Owners Should Know

On April 10, 2025, the U.S. House of Representatives narrowly approved a Republican-backed budget resolution that lays the groundwork for extending the 2017 Tax Cuts and Jobs Act (TCJA)—a landmark tax overhaul passed during the Trump administration.

The vote passed 216–214 and represents a key step in the GOP’s strategy to make the tax cuts permanent, with an estimated $5 trillion in tax reductions over the next decade.

For business owners, tax professionals, and investors, this development signals major potential changes to federal tax policy heading into 2026.

What’s in the New Budget Framework?

While the legislation does not immediately change the tax code, it authorizes committees to begin drafting specific legislation focused on:

• Extending individual tax rate reductions that are currently set to expire in 2025

• Preserving the 20% pass-through income deduction (Section 199A) for LLCs, S corps, and sole proprietors

• Making permanent higher estate and gift tax exemptions

• Expanding tax benefits for families and low-income households

The bill also includes unrelated provisions related to border security, energy development, and spending cuts, which will be points of negotiation in the Senate.

How Could This Affect Small Businesses?

If passed into law, the extension of the TCJA provisions would have a significant impact on businesses and individual taxpayers, especially those structured as pass-through entities.

1. Continued Access to the 20% QBI Deduction

Business owners could continue to deduct up to 20% of their qualified business income—a valuable tax-saving tool that has boosted cash flow and reinvestment capacity for millions of small businesses.

2. Stability in Marginal Tax Rates

The preservation of reduced personal income tax brackets could help maintain lower effective tax rates for business owners whose business income passes through to personal returns.

3. Increased Certainty for Tax Planning

With the original TCJA provisions set to expire in 2025, this budget framework creates an opportunity for long-term strategic planning if Congress makes these cuts permanent.

What Are the Fiscal Concerns?

The nonpartisan Congressional Budget Office has estimated that the House plan would add approximately $5.7 trillion to the national deficit over the next ten years if no new revenue sources or spending cuts are implemented. This has drawn criticism from Democratic lawmakers and fiscal watchdog groups, who warn that such tax policy may require future spending cuts or borrowing.

Next Steps in Congress

The House budget now heads to the Senate, where it faces a tougher path due to the slim Democratic majority. Any final legislation extending TCJA provisions will likely emerge through the budget reconciliation process, which allows tax legislation to pass with a simple majority in the Senate.

How Bizora Helps You Navigate Tax Law Changes

At Bizora, we specialize in helping small businesses and their CPAs stay ahead of tax policy shifts. We provide:

• Real-time updates on federal and state tax legislation

• Strategic tax planning support tied to potential law changes

• Entity structuring guidance to maximize deductions and credits

Plan Now—Even Before the Law Changes

While this legislation isn’t final, now is the time to prepare. Whether you’re planning future investments, considering entity restructuring, or managing multi-year tax projections, the potential extension of the TCJA could shape your business’s tax strategy for years to come.

Visit bizora.ai for expert guidance, tax compliance tools, and proactive planning support tailored for small businesses.