Updates on the 2025 House Tax Proposal

We’ve known for a while that 2025 would be a big year for tax legislation, and the House got the ball rolling this week with the release of their initial tax and budget proposal.  This proposal includes a wide variety of changes to address provisions from the TCJA that will be expiring after 2025 as well as items from last year’s Presidential campaign. 

Key highlights of the proposal include: 

• Maintaining all the current income tax rates and brackets for 2026 and beyond, rather than the planned across the board increases under current law.
• An increase in the gift and estate tax exemption for 2026, rather than the currently scheduled decrease.
• An increase in the deduction limit for state and local taxes (SALT), albeit with some limitations.
• A new deduction for interest paid on qualifying car loans. 
  Enhancements to Health Savings Account, 529 Plans and more. 

For an additional summary of the changes, click the article below. A more detailed analysis is also available. 

As a reminder, this is simply the first proposal to come out of Washington, and more will follow – so it’s very likely some of these provisions will change or even be removed from a final bill.  However, Congress hopes to finalize all of this by July 4, so things will move quickly. 

As these proposals progress, we will be sure to pass along updates to you.  In the meantime, please reach to our team with any questions.