This bill creates a tax exclusion for K-12 public school teachers, allowing them to exclude up to $50,000 of their wages from federal income tax. Teachers in schools where 75%+ students qualify for free/reduced lunches, in rural areas, or teaching special education/STEM subjects qualify for a higher exclusion of $65,000. To qualify, teachers must work at least 900 hours in a school year at a public elementary or secondary school (including charter schools). The exclusion applies to taxable years beginning after December 31, 2025, and requires schools to verify eligibility for the IRS. It directly affects eligible K-12 public school teachers by reducing their taxable income.
This bill amends the CDFI Bond Guarantee Program to improve its operation. It raises the minimum guarantee amount to $25 million per bond issue, sets an annual cap of $1 billion for all guarantees, and extends the program's deadline by four years from enactment. The changes aim to provide more predictable access to long-term capital for Community Development Financial Institutions (CDFIs) serving underserved communities. The bill also requires the Treasury Secretary to submit two reports on the program's effectiveness to Congress within one and three years of enactment.
This bill, S 1613 (Tax Relief for New Businesses Act), simplifies tax deductions for new businesses forming corporations or partnerships. It combines "start-up" and "organizational" expenses into one deductible category, increasing the annual deduction limit from $5,000 to $50,000 (and the phaseout threshold from $50,000 to $150,000). It also creates special rules allowing new businesses to treat start-up/organizational losses separately when calculating net operating loss carryforwards, with more favorable tax treatment for these losses. The changes apply to expenses paid or incurred in taxable years beginning after December 31, 2025.
S 549, the Maritime Fuel Tax Parity Act, expands a federal tax exemption for alternative motorboat fuels to cover vessels operating exclusively between Atlantic or Pacific U.S. ports (including territories). It amends the tax code to include these specific vessels under the existing exemption for fuel used by vessels described in section 4042(c)(1). The change applies to fuel sold for use after December 31, 2025, directly affecting commercial vessels limited to coast-to-coast U.S. trade. This policy modifies tax treatment without altering broader fuel regulations or creating new requirements.
This bill creates a new tax deduction for individuals who pay interest on loans for qualifying American-made vehicles. It allows a deduction of up to $2,500 per tax year for interest paid on vehicles manufactured primarily in the U.S. with final assembly completed within the country, weighing under 14,000 pounds, and having at least four wheels. The deduction applies regardless of whether the taxpayer itemizes other deductions and is available for vehicles purchased on or after January 1, 2025. It becomes effective for tax years beginning after December 31, 2025.
This bill creates a new federal tax deduction for qualified flood insurance premiums paid by homeowners. It directly affects individuals who own property in flood-prone areas and pay for flood insurance through either the National Flood Insurance Program (NFIP) or private policies meeting specific criteria. The deduction is limited to taxpayers with adjusted gross income under $200,000 ($400,000 for joint filers), and covers premiums for NFIP policies, private flood insurance, Federal Policy Fees, and certain surcharges. The change applies to taxable years beginning after the bill's enactment date.
S 1918, the Access Technology Affordability Act of 2025, creates a new federal tax credit for expenses related to access technology for blind individuals. It allows taxpayers to claim a credit of up to $2,000 per 3-year period for qualified hardware, software, or IT tools that convert visual information into accessible formats for themselves, their spouse, or a blind dependent. The credit amount adjusts annually for inflation starting in 2026 and expires after 2030. This policy directly affects taxpayers who pay for such technology for blind family members, reducing their tax liability for these qualifying expenses.
This bill increases healthcare affordability for low- and middle-income people by expanding eligibility for premium tax credits under the Affordable Care Act. It removes the previous 400% of poverty level cap for subsidy eligibility and replaces it with a new sliding scale based on income tiers, ranging from 0% to 8.5% of household income for coverage costs. The scale adjusts linearly across income levels, with households earning 300-400% of poverty paying 6.0%-8.5% of income (up from the prior fixed 400% cap), while lower-income households pay progressively less. These changes apply to tax years beginning after December 31, 2025, directly affecting individuals purchasing health insurance through marketplace plans.
The ASSIST Act (S 2050) increases federal funding for mental health and substance use disorder services provided in schools and school-based health centers. It raises the federal medical assistance percentage (FMAP) for these services to 90% for states, starting one year after enactment, while ensuring this doesn’t reduce existing federal payments or count against territorial spending limits. The bill also creates a new grant program administered by the Health and Human Services Secretary to fund entities like school districts and universities in hiring more licensed mental health providers, requiring culturally competent care and annual reporting on provider numbers and service effectiveness. It prohibits using grant funds for threat assessment teams and mandates a report to Congress on the program’s effectiveness within 18 months.
The PILLS Act creates tax credits to incentivize domestic production of generic drugs and biosimilars in the United States. It offers a production credit of 30% (35% for final drug products) of the value added to eligible components, with an additional domestic content bonus of up to 20% for components made with US-sourced materials. Companies can also claim a 25% investment credit for qualified facilities producing these drugs, phasing out for facilities beginning construction after 2028. The bill excludes foreign entities of concern from these benefits and requires documentation for domestic content claims. These provisions apply to FDA-approved generic drugs and biosimilars to increase domestic supply of essential medications.
