Article | Tax alert
Senate Finance Committee unveils significant changes to One Big Beautiful Bill Act
June 18, 2025 · Authored by Jessica L. Jeane
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.
Related articles
View our recent insights for more information and background on the One Big Beautiful Bill Act
Tax policy update: House-approved tax reform bill key provisions and takeaways
This article provides a closer look at key business, individual and international provisions proposed in the bill, and the potential impact on taxpayers. This tax policy 2025 update is a breakdown of the One Big Beautiful Bill.
“Beautiful Bill” brings significant changes to the Inflation Reduction Act
House amendment to H.R. 1 brings changes to Inflation Reduction Act, accelerating sunsets and adding FEOC compliance—impacting 45Y, 48E, 45U and more.
One Big Beautiful Bill Act: Key business tax provisions
This article provides an initial analysis and important takeaways of key business tax provisions within the House-approved bill.
One Big Beautiful Bill Act: Key individual tax, trust and estate provisions
This article provides an initial analysis and important takeaways of key individual tax provisions within the House-approved bill.
One Big Beautiful Bill Act: Key international tax provisions
This article provides an initial analysis and important takeaways of key international tax provisions within the House-approved bill.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.
