House Sends Final “One Big Beautiful Bill Act” to President Trump

Today the House of Representatives agreed to the Senate-amended text of H.R. 1—the “One Big Beautiful Bill Act”—by a 218-214 vote. With this action Congress has now completed work on the 940-page package and dispatched it to the White House for signature, which Republican leaders expect by July 4. The bill makes the 2017 TCJA rate structure permanent, expands some credits, tightens or repeals others, and pairs deep social-program cuts with new defense and border spending. For businesses, individuals, and state governments, the measure resets the tax baseline for the next decade.

High-Level Summary Table

Provision (final text)	Statutory Section	Effective Date	10-Year Revenue Impact*
Raise SALT cap to $40 000 (indexed) through 2029	§ 11001	1 Jan 2025	–$129 bn
Child Tax Credit to $2 500; full refundability	§ 12001	1 Jan 2025	–$240 bn
Make TCJA individual & 21 % corporate rates permanent	§§ 10101-10305	1 Jan 2026	–$2.4 tn
Phase-out wind/solar ITC-PTC; levy on Chinese content	§§ 21001-21007	1 Jan 2026	+$172 bn
Estate-tax exemption $15 m single / $30 m MFJ, indexed	§ 13001	1 Jan 2026	–$212 bn
Medicaid work rules & provider-tax caps	Title IV	1 Jan 2026	+$600 bn

*Joint Committee on Taxation (JCT) estimate for Senate-passed text, now final.

Section-by-Section Technical Breakdown

§ 11001 — Temporary SALT Cap Increase

“Section 164(b)(6)(B) is amended by striking ‘$10,000’ and inserting ‘$40,000’ for taxable years 2025 through 2029.”

• Indexed 1 % annually; reverts to $10 000 in 2030.

AGI Tier	Current Cap	2025-2029 Cap
< $400 k	$10 000	$40 000
$400 k – $1 m	$10 000	$40 000
> $1 m	$10 000	$40 000

§ 12001 — Child Tax Credit Expansion

“Section 24(a) is amended by striking ‘$2,000’ and inserting ‘$2,500’; subsection (d)… is amended by striking ‘$1,400’ and inserting ‘$2,500.’”

• Fully refundable; phase-out begins $400 k MFJ.

• Indexed for CPI-U after 2027.

Year	Credit per Child	Phase-Out Threshold (MFJ)
2025	$2 500	$400 k
2028 est.	$2 550	$400 k

§ 13001 — Estate-Tax Exemption Indexing

“…striking ‘$5 000 000’ and inserting ‘$15 000 000’…”

Filing Status	2025 Exemption (pre-bill)	2026 Exemption
Single	$13.61 m	$15 m
Married	$27.22 m	$30 m

§§ 21001-21007 — Clean-Energy Credit Phase-Out & Levy

Credit	2025	2026	2027	2028
Solar ITC	30 %	26 %	22 %	0 %
Wind PTC (¢/kWh)	1.5	1.0	0.5	0

New levy: 10 % surcharge on projects with > 40 % Chinese components placed in service after 31 Dec 2027.

Revenue & Deficit Analysis

Version	Ten-Year Cost	Key Drivers
House Original (05/22)	–$3.94 tn	Larger child credit, no Medicaid offsets, slower clean-energy sunset
Final Bill (House-adopted Senate text)	–$3.30 tn	Smaller child credit, Medicaid savings, faster ITC/PTC repeal

(CBO/JCT scores as of 30 June 2025).

Implications & Advanced Planning

Pass-Through Owners – Maximize PTE tax elections while $40 k SALT cap is in force; reassess QBI vs. C-corp rates.

High-Net-Worth Estates – Use the $15 m indexed exemption for gifting, GRATs, and dynasty trusts.

Green-Energy Developers – Accelerate project timelines to secure remaining ITC/PTC; review supply chains to avoid the 2027 Chinese-content levy.

Legislative Timeline & Next Steps

Action	Date	Status
House passed original H.R. 1	22 May 2025	Completed
Senate passed amended bill	01 Jul 2025	Completed
House concurred with Senate text	03 Jul 2025	Completed
Enrolled bill sent to White House	03 Jul 2025	In process
Expected presidential signature	04 Jul 2025	Forecast

Conclusion

With House concurrence finished, H.R. 1 now awaits the President’s signature. Once signed, the permanent TCJA extensions, temporary SALT relief, estate-tax expansion, and clean-energy rollbacks become law reshaping tax strategy for years to come.

Advisors should watch IRS implementation guidance, effective-date nuances, and potential technical corrections that typically follow legislation of this size.