HR 1871, the Water Conservation Rebate Tax Parity Act, changes federal tax rules to allow homeowners to exclude certain water-related rebates from taxable income. It expands the existing tax exclusion to cover rebates for water conservation measures (like efficient fixtures), storm water management (such as rain gardens), and wastewater management (like septic system upgrades), but only for the homeowner's principal residence. These rebates must come from public utilities, storm water providers, or state/local governments. The changes apply to rebates received after December 31, 2021, and do not affect tax treatment for rebates received before 2022.
This concurrent resolution establishes the federal budget framework for fiscal years 2025 through 2034, setting specific targets for revenues, spending, and deficits across the decade. It projects federal revenues to increase from $3.4 trillion in 2025 to $5.4 trillion in 2034, with deficits ranging from $2.08 trillion to $2.12 trillion over the period. The resolution includes specific deficit reduction requirements for 11 congressional committees, such as a $880 billion target for the Energy and Commerce Committee to reduce deficits over the 10-year period. It also contains policy statements supporting economic growth through reduced spending, deregulation, and tax cuts. This resolution serves as the budgetary blueprint that Congress will use to guide spending decisions for the next decade.
This resolution supports federal investment in public K-12 schools, affirms that the Department of Education (ED) plays a vital role in the public education system, and states that public education funding should not be diverted (e.g., through the use of vouchers) to privately run K-12 schools. The resolution also rejects any claim that the executive branch has the legal authority to (1) dismantle or relocate ED or any of its major offices; or (2) reduce federal funding for public education, block federal grants for education, or transfer funding burdens for education to state and local governments.
The RETAIN Act creates a refundable tax credit for educators in high-need schools, including early childhood educators, teachers, school leaders, and school-based mental health providers. The credit amount increases with years of continuous service, ranging from $5,800 for the first two years to $11,600 after 10 years of service. It is refundable (meaning it pays out even if no income tax is owed) and applies to those working in qualifying schools serving high-poverty areas or meeting Title I eligibility criteria. The credit aims to address retention challenges by rewarding long-term service in under-resourced educational settings.
This bill (S 1856) would amend the tax code to exclude certain military bonuses from being counted as taxable income. Specifically, it changes Internal Revenue Code Section 134 to remove bonuses paid to active-duty service members under Chapter 5 of Title 37, U.S. Code, from gross income calculations. The change would apply to tax returns filed for 2025 and later tax years. It directly affects service members receiving these specific bonuses by potentially reducing their federal tax burden.
This bill amends U.S. tax law to prevent corporations from avoiding U.S. taxes through "inversions," where a foreign company acquires a U.S. business and moves its tax residence abroad. It treats certain foreign corporations as domestic for tax purposes if they acquire a U.S. entity after May 8, 2014, and either have over 50% of their stock held by former U.S. shareholders or maintain significant U.S. operations (at least 25% of employees, compensation, assets, or income in the U.S.). Exceptions apply if the corporation has substantial business activities in its original foreign country. The changes apply to taxable years ending after May 8, 2014, targeting tax avoidance strategies rather than affecting most standard multinational businesses.
The Middle Class Savings Act adjusts the income thresholds that determine tax rates for capital gains, raising the income levels at which higher tax rates apply. Specifically, it increases the breakpoints for all income brackets - such as raising the threshold from $77,200 to $103,350 for the lowest bracket - so more taxpayers with capital gains income will pay lower tax rates. This change directly affects individuals and households earning capital gains income who fall within these adjusted income ranges. The policy modifies how capital gains are taxed under current law, applying the same income brackets used for regular income to capital gains tax calculations. The amendments take effect for taxable years beginning after December 31, 2024.
This bill modifies IRS rules to provide tax filing extensions after major natural disasters. It allows state governors (or the DC mayor) to request 120-day extensions for federal tax deadlines when they declare a "qualified disaster" like hurricanes, floods, or earthquakes. The extension period increases from 60 to 120 days for affected taxpayers in the impacted state or territory. The change applies to all U.S. states, territories, and the District of Columbia, effective after the bill's enactment.
This bill expands eligibility for two tax credits: the Saver's Credit (for retirement savings) and the Saver's Match (for low-income workers). It removes the previous exclusion of full-time students, allowing any dependent student claimed by a parent on their tax return to qualify for these benefits. The change applies to contributions made after the bill's enactment and aligns with existing rules for dependents under Section 151 of the tax code. This directly affects dependent college students who were previously ineligible for these credits, potentially increasing their access to retirement savings incentives.
This bill creates a 30% tax credit for businesses investing in disaster mitigation projects on "working waterfront" properties, such as those used for commercial fishing, boating, or aquaculture. The credit covers up to $300,000 annually per business for eligible costs like floodproofing, shoreline stabilization, or warning systems designed to prevent damage from natural hazards. To qualify, a business must meet a gross receipts limit of $47 million annually and use the property for water-dependent activities with access to navigable waters. The credit applies to projects completed after 2025 and is limited to one claim per business every 10 years.
