05/14/2025 at 12:00AM
Full committee markup, continued from Tuesday.
- Joint Committee on Tax Description of original bill
- Joint Committee on Tax Description of ANS
- Changes from print to ANS
The bill terminates several Inflation Reduction Act tax credits:
- terminates the $7,500 tax credits, known as 30D credits, for purchasing electric vehicles
- terminates the Previously-Owned Clean Vehicle tax credits
- terminates the tax credit for businesses purchasing or leasing certain EVs (Qualified Commercial Clean Vehicles)
- terminates the Alternative Fuel Vehicle Refueling Property tax credit
- terminates the Energy Efficient Home Improvement tax credit
- terminates the New Energy Efficient Home tax credit
- phases out Zero-Emission Nuclear Power Production tax credit
- terminates the Clean Hydrogen Production 45V tax credit
Part I:
Part II:
Part III:
The bill released would add $5 trillion to primary deficits through 2034 as written, and over $5.5 trillion to primary deficits if made permanent.
The draft would not only extend but also expand most parts of the TCJA. For example, extensions of tax rate cuts would be coupled with a further increase in most bracket thresholds – effectively undoing the original TCJA’s savings from indexing the tax code to the chained CPI. The estate tax exemption would also be increased from roughly $14 million to $15 million. And the 20 percent 199A pass-through deduction would be increased to 22 percent and expanded in other ways.
At the same time, the draft would temporarily boost the standard deduction by an additional $1,000 to $2,000 for four years and boost the Child Tax Credit by an additional $500 (from $2,000 to $2,500). We estimate these expansions will add about $300 billion to the deficit impact of extension as written but roughly $700 billion if made permanent.