Senate Finance Committee unveils significant changes to One Big Beautiful Bill Act

On June 16, 2025, the Senate Finance Committee unveiled its much-anticipated proposal of tax provisions to be included in the budget reconciliation bill known as the One Big Beautiful Bill Act. The 549-page text contains significant differences from the House-approved bill, though it remains a working draft as Republicans continue negotiations on several provisions.

Notably, the Senate bill proposes permanency for three major business provisions, including business interest expensing, bonus depreciation and research and development expensing. Further, the bill proposes retaining the state and local tax cap at the current $10,000 ($5,000 for married filing separately) level, though it notes these negotiations are ongoing, and would make permanent the section 199A deduction at the current 20% rate. Additionally, the Senate bill proposes significant international tax changes and more lenient adjustments to the House’s phase-out of certain Inflation Reduction Act (IRA) clean energy credits. While the Senate bill retains the House-approved permanency of individual tax provisions under the Tax Cuts and Jobs Act, it proposes several noteworthy modifications.

Looking ahead, the Senate bill has already received criticism from several House and Senate Republicans, and with the majority’s narrow margins in both chambers, its road to the president’s desk remains rocky. For more details, view the full text and a section-by-section breakdown provided by the Senate Finance Committee.

Baker Tilly’s national tax practice will provide preliminary analysis on how the Senate’s proposed legislative language differs from the House-approved bill in the coming days and will continue to monitor the measure as it makes its way to the Senate floor. Stay tuned for additional tax alerts and the June 2025 Policy Pulse next week.