Summary of Ways and Means Chairman's Mark
On May 9, the House Ways and Means Committee released initial legislative text of the tax bill to be marked up this week. The Committee is expected to release a revised and more substantive bill Monday afternoon, so the provisions below could be modified and are subject to change.
Individual Provisions:
- Permanent extension of reduced marginal tax rates, the increased standard deduction, and also provides a temporary increase of the standard deduction, $1,000 for single filers and $2,000 for joint filers through 2028
- Permanently eliminates personal exemptions
- Increases the child tax credit from $2,000 to $2,500 through 2028 and sets it at $2,000 afterward
- Makes permanent the Section 199A deduction for passthrough entities and increases it to 22 percent
- Permanently extends the increased estate tax exemption and sets it at $15 million for 2026 while indexing for inflation
- Permanently extends the mortgage interest deduction limitation as well as the temporary limitation on deducting personal casualty losses
- Makes permanent the elimination of the moving expenses deduction, but keeps it in place for members of the military
The bill includes permanent extension of provisions related to ABLE accounts. It also restores the TCJA’s provisions on excluding student loan debt discharged as a result of death or disability from gross income, as well as extending it.
On the international tax side, it includes provisions related to foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI) from the TCJA.
