Budget & Taxes (Income Tax)

in committee · United States · Senate May 20, 2025

S 1821: Tackling Predatory Litigation Funding Act

This bill imposes a new tax on entities receiving funding for civil lawsuits through litigation financing agreements. It requires a 3.8% surcharge (added to regular income tax rates) on profits from such funding, applied at the entity level for businesses like partnerships. The tax applies to third parties (e.g., corporations, individuals) who receive funds for lawsuits but excludes small agreements under $10,000 and standard loans with interest capped at 7% or 2x Treasury rates. The tax takes effect for 2026 taxable years, with 50% of the tax withheld directly from settlement payments.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 3.8% tax on litigation funding entities, generating revenue and regulating predatory practices, aligning with fiscal responsibility and targeted taxation.90% confidence

Sub-Topics Fees & Licensing Income Tax

Track

in committee · United States · Senate Feb 11, 2025

S 510: Financing Our Energy Future Act

The Financing Our Energy Future Act (S 510) expands tax-qualified activities for green energy publicly traded partnerships under the Internal Revenue Code. It directly affects businesses investing in renewable energy projects by adding specific eligible activities, such as generating power from qualified renewable sources (e.g., solar, wind, or advanced nuclear), storing energy using new technology, capturing carbon dioxide, and producing low-emission fuels. Key provisions require new fuels to achieve at least a 60% reduction in lifecycle greenhouse gas emissions compared to baseline standards, and mandate that carbon capture facilities capture at least 50% of their carbon oxide output. The changes take effect for taxable years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax-qualified activities for renewable energy businesses, providing tax incentives under Internal Revenue Code to promote green energy investment.95% confidence ✓ EnergySupports EnergyExpands tax incentives for renewable energy projects including solar, wind, carbon capture, and low-emission fuels, directly funding clean energy infrastructure expansion.95% confidence ✓ EnvironmentSupports EnvironmentExpands tax incentives for renewable energy, carbon capture, and low-emission fuels, directly advancing environmental protection through clean energy investment.95% confidence

Sub-Topics Income Tax Energy Storage Renewable Energy Solar Climate Change Waste Management

Track

in committee · United States · House May 20, 2025

HR 3512: Tackling Predatory Litigation Funding Act

HR 3512, the Tackling Predatory Litigation Funding Act, imposes a new annual tax on funds received by third-party investors who finance lawsuits through litigation financing agreements. It directly affects investors (including foreign entities) who provide funding to plaintiffs or law firms in exchange for a share of settlement or judgment proceeds, excluding small agreements under $10,000 or standard loans. The tax equals the top individual income tax rate plus 3.8 percentage points, with 50% withheld from settlement payments by parties involved in the lawsuit. The law also clarifies that such funds cannot offset losses and excludes certain typical legal fee reimbursements from taxation. The provisions take effect for taxable years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new tax on litigation financiers, closing potential loophole and promoting fiscal responsibility through targeted taxation.95% confidence

Sub-Topics Income Tax

Track

in committee · United States · House Apr 7, 2025

HR 2671: Tax Fairness for Workers Act

The Tax Fairness for Workers Act (HR 2671) would allow certain employees to deduct work-related expenses directly from their gross income. Specifically, it creates an above-the-line deduction for union dues (amending IRC Section 62(a)(1)) and reinstates a deduction for other out-of-pocket work costs like uniforms or tools (amending IRC Section 67(g)), effective for 2025 tax years. This directly affects union members and workers with significant job-related expenses who previously could not deduct these costs. The bill removes the prior limitation that barred these deductions, making them available without needing to itemize. The policy change simplifies tax filing for affected workers by treating these expenses as deductible business costs.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax relief for workers with job-related expenses (union dues, uniforms), reducing taxable income for middle/lower income earners.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentReinstates tax deductions for union dues and work expenses, directly supporting workers' financial relief and collective bargaining efforts per bill summary.92% confidence

Sub-Topics Income Tax Collective Bargaining Labor Standards

Track

in committee · United States · House Mar 14, 2025

HR 2153: Fight for Families Act of 2025

HR 2153, the Fight for Families Act of 2025, makes a portion of the federal adoption tax credit refundable for families adopting children with special needs. Specifically, it treats the part of the credit covering special needs adoption expenses as refundable - meaning eligible families could receive a cash refund even if they owe no income tax. This directly affects taxpayers who adopt children with special needs and claim the credit under Section 23 of the Internal Revenue Code. The change applies to taxable years beginning after December 31, 2025, and modifies how the credit is calculated and applied.

Topics ✓ Budget & TaxesSupports Budget & TaxesMakes adoption tax credit refundable, providing direct tax relief to lower-income adoptive families with special needs children, advancing tax policy for vulnerable groups.90% confidence

Sub-Topics Income Tax Tax Credits

Track

in committee · United States · Senate Sep 11, 2025

S 2780: No Tax on Large Party Tips Act

This bill reclassifies two types of restaurant tips as "voluntary" for tax purposes: (1) tips automatically added to a customer's bill at payment time, and (2) tips suggested by a business (like "18% suggested"). It directly affects customers paying large group bills and restaurants that use these tip structures. The key provision exempts these specific tips from being counted as taxable income under current tax rules, meaning customers wouldn't owe income tax on them. This is a concrete policy change to the tax treatment of certain service charges, not a broader tax overhaul.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts automatic/suggested restaurant tips from taxable income, providing direct tax relief to customers. Aligns with tax relief indicator for Budget & Taxes.90% confidence

Sub-Topics Income Tax Tax Credits

Track

in committee · United States · House Jan 15, 2025

HR 430: SALT Deductibility Act

HR 430, the SALT Deductibility Act, repeals the $10,000 cap on deducting state and local taxes (SALT) for federal income tax filers who itemize deductions. This change directly affects taxpayers in high-tax states who currently face the $10,000 limit on deducting their state income taxes, property taxes, and sales taxes. The bill amends the Internal Revenue Code to remove the specific deduction limit (Section 164(b)(6)), allowing these taxpayers to deduct their full state and local tax payments. The repeal applies to tax returns filed for taxable years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals $10k SALT cap, providing tax relief for high-tax state residents by allowing full deduction of state/local taxes, directly advancing taxpayer-friendly tax policy.95% confidence

Sub-Topics Income Tax

Track

in committee · United States · House Jan 9, 2025

HR 246: SALT Fairness for Working Families Act

The SALT Fairness for Working Families Act raises the federal income tax deduction limit for state and local taxes (SALT) from $10,000 to $15,000 for single filers and married individuals filing separately, and to $30,000 for married couples filing jointly. This change applies to tax returns filed for taxable years beginning after December 31, 2024. The bill directly affects individual taxpayers in high-tax states who itemize deductions, allowing them to deduct more of their state and local property, income, or sales taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesRaises SALT deduction limits for middle-income taxpayers in high-tax states, providing direct tax relief per support indicators.95% confidence

Sub-Topics Income Tax Sales Tax

Track

in committee · United States · House Jan 7, 2025

HR 228: To amend the Internal Revenue Code of 1986 to increase and adjust for inflation the above-the-line deduction for teachers.

HR 228 increases the tax deduction for elementary and secondary school teachers from $250 to $1,000 annually for out-of-pocket classroom expenses. This change directly affects teachers who pay for supplies, materials, or other work-related costs using their own money. The bill amends the Internal Revenue Code to raise the deduction amount and adjusts related provisions for inflation, effective for tax years starting after December 31, 2024. It provides a concrete tax benefit to qualifying teachers without altering other tax rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases teacher tax deduction from $250 to $1,000, providing direct tax relief for educators and aligning with middle-income tax relief indicators.90% confidence ✓ EducationSupports EducationIncreases teacher tax deduction for classroom expenses, directly supporting educators financially per bill's explicit purpose.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentIncreases tax deduction for teachers' classroom expenses, providing direct financial support for work-related costs, strengthening employment benefits for educators.95% confidence

Sub-Topics Income Tax K-12 Education Teachers

Track

in committee · United States · Senate Oct 22, 2025

S 3027: Interstate Commerce Simplification Act of 2025

This bill amends an existing tax law provision to clarify that any business activity facilitating order solicitation (e.g., online ordering systems or marketing) counts as "solicitation" for sales tax purposes - even if the activity also serves other business functions. It directly affects businesses selling goods or services across state lines, particularly those operating online or with out-of-state customers. The key change adds a specific definition to Section 101(d) of the 1959 tax law, simplifying how states determine when sales tax applies to remote transactions. This is a procedural clarification, not a new tax or regulation.

Topics ✓ Budget & TaxesSupports Budget & TaxesClarifies online order systems as taxable solicitation, closing a loophole to increase state tax revenue from cross-state e-commerce businesses.92% confidence

Sub-Topics Income Tax Sales Tax

Track