This bill creates tax credits for small tax-exempt nonprofits (like charities, schools, and religious organizations) to help them start or maintain retirement plans for their employees. It provides two specific credits: one for covering initial setup costs of a pension plan and another for automatically enrolling employees in retirement savings. The credits reduce the employer’s payroll tax liability, capped at the amount of payroll tax paid during the year. The changes apply to taxable years beginning after December 2024.
HR 320, the "Make Marriage Great Again Act of 2025," eliminates the tax "marriage penalty" for married couples filing jointly. The bill modifies the federal income tax code by doubling the income thresholds for married couples' tax brackets (using the brackets that apply to single filers), effectively making the tax rates for married couples more favorable. This change directly affects married couples filing jointly whose combined income would have previously pushed them into a higher tax bracket than if they filed separately. The policy change applies to taxable years beginning after December 31, 2024, and removes specific provisions that previously created the penalty.
This bill disallows tax deductions for interest and depreciation on rental properties owned by individuals or entities holding 50 or more single-family homes (defined as properties with four or fewer units). It directly affects large-scale landlords, including corporations or investors who own extensive rental portfolios, by removing these deductions from taxable income. Exceptions apply if the property is sold to an individual for their primary residence or to a qualified nonprofit organization focused on affordable housing (like community land trusts or housing nonprofits). The law aims to limit tax benefits for investors who own many rental homes, while preserving deductions for sales that support housing affordability. It takes effect for taxable years after enactment.
S 2475, the American Worker Rebate Act of 2025, provides tax rebates to eligible U.S. workers using revenue from import tariffs. It offers rebates of at least $600 per person (or $1,200 for joint filers), plus $600 per qualifying child, based on either a fixed amount or a share of tariff revenue collected after January 20, 2025. The rebate phases out for higher earners ($75,000+ single filers, $112,500 head of household, $150,000 joint filers) and requires Social Security numbers for eligibility. Rebates are paid as advance refunds by 2026, with no interest on overpayments.
HR 782, the Reignite Hope Act of 2025, creates a $3,500 annual tax credit for employers hiring "critical employees" in qualified opportunity zones. This credit directly affects employers of healthcare workers (like nurses), law enforcement, firefighters, and child care providers who work full-time in designated opportunity zones. The bill also increases the child tax credit to $4,500 per child under age 6 and makes a portion of the credit refundable, while adding requirements for Social Security numbers on tax returns. The critical employee credit expires after three years, and these tax changes apply to taxable years beginning after December 31, 2024.
This bill creates a new $1,250 tax credit for first-time parents, doubling to $2,500 for joint filers. It directly affects parents who haven't claimed this credit before and have either: (1) a child born or adopted in the current year, or (2) a non-custodial parent with a child born/adopted the previous year. The credit applies to taxable years beginning after December 31, 2025, and is added as a new section (36C) to the tax code. It does not change existing child tax credits or other provisions.
The Lower Your Taxes Act expands tax credits for low and middle-income households, primarily affecting workers and families with children. It significantly increases the Earned Income Tax Credit, raising the maximum credit percentage from 34% to 68% and increasing the earned income threshold from $6,330 to $19,000. The bill also establishes a new refundable child tax credit with monthly advance payments of $300 for children under 6 and $350 for children 6-17, with income limits. For high-income earners, it changes capital gains tax rates, and for corporations, it increases tax rates from 21% to 28%.
HR 2798 creates a federal tax credit allowing individuals to claim 75% of qualified cash or securities donations (up to $5,000 or 10% of adjusted gross income) to eligible charter school organizations. To qualify, organizations must be 501(c)(3) entities meeting strict criteria, including being in the top 10% for student performance in their state or receiving specific federal grants, and must undergo annual audits. The credit is subject to a $5 billion annual cap, allocated first to states (with $10 million per state) and then nationally on a first-come, first-served basis. This directly affects individual donors making qualifying contributions and charter school organizations seeking to expand operations through tax-advantaged funding.
The Infant Formula Made in America Act of 2025 creates two tax credits to incentivize domestic infant formula production. It offers a 30% investment credit for manufacturers who build or expand facilities to make U.S.-made infant formula (with a total credit cap of $750 million), plus a $2 per pound production credit for formula sold in the U.S. (capped at 18 million pounds annually). The credits are limited to manufacturers with global revenue under $750 million and require at least 50% of formula produced with the investment credit to be sold within the U.S. within one year. The bill includes recapture provisions if manufacturers fail to meet these requirements, and applies to facilities starting construction after the bill's enactment.
HR 801, the Charitable Act, creates a new tax deduction for individuals who do not itemize deductions on their federal tax returns. It allows these taxpayers to deduct up to one-third of their standard deduction amount for charitable contributions in 2026 and 2027. The bill directly affects non-itemizing individual taxpayers by providing a limited, direct deduction for charitable giving without requiring them to itemize. The deduction is capped at 1/3 of the standard deduction amount for those tax years, effective for returns filed in 2027 and 2028.
