The REMIT Act imposes a 15% excise tax on international money transfers (remittances) sent by non-U.S. citizens or through non-qualified providers. Senders pay the tax, which remittance providers collect and remit to the IRS quarterly. U.S. citizens/nationals sending money through "qualified providers" (those with IRS agreements verifying sender status) are exempt from the tax and can claim a refundable tax credit for amounts paid. The law requires providers to report transfer details to the IRS and mandates senders provide Social Security numbers to claim the credit, with all provisions effective after 2025.
S 788, the HOPE for Homeownership Act, targets hedge funds with $50 million or more in assets under management that own single-family residences. It imposes two taxes: a 15% or $10,000 tax on acquiring new homes, and an annual tax of $5,000 per excess home held beyond a phased ownership limit (starting at 90% of prior holdings and declining to 0% after 9 years). The bill also disallows mortgage interest and depreciation deductions for properties owned by these funds when they owe the tax. This directly affects large hedge funds owning multiple single-family homes, requiring them to reduce holdings over time or pay ongoing taxes.
HR 684, the Protecting American Savers and Retirees Act, repeals a tax on corporate stock buybacks. The bill removes Chapter 37 of the Internal Revenue Code, which imposed an excise tax on companies repurchasing their own shares. This change directly affects corporations that engage in stock buyback programs by eliminating this tax liability. The repeal takes effect for taxable years beginning after December 31, 2024.
This bill imposes a 50% excise tax on the fair market value of "listed investments" acquired by large private colleges and universities during a taxable year, and a 100% tax on net income from such investments. It defines "listed investments" as any stock, debt, or derivatives held in entities on government security lists (like the Commerce Department's Entity List or FCC Covered List). The tax applies to private institutions with endowments exceeding $1 billion that aren't state universities, targeting investments in entities deemed national security threats. The law requires the Treasury to establish a consolidated list of these entities within 60 days of enactment, with taxes taking effect for acquisitions and income after the first calendar year following enactment.
HR 1006, the Higher Education Accountability Tax Act, increases the excise tax on investment income for private colleges and universities from 1.4% to 10% for all affected institutions, with an additional 20% tax for schools that raise tuition faster than inflation. It directly affects private colleges with annual investment income exceeding $250,000, particularly those increasing net tuition prices (for first-time, full-time undergraduates) at a rate exceeding the Consumer Price Index (CPI) over three years. The bill modifies existing tax code provisions to implement these rate changes, effective for taxable years beginning after December 31, 2024. This creates a tiered tax structure based on both investment income size and tuition growth relative to inflation.
HR 1440, the Discriminatory Gaming Tax Repeal Act of 2025, repeals Chapter 35 of the Internal Revenue Code, which imposed excise taxes on wagering activities. This repeal directly affects gambling businesses and individuals subject to these taxes, removing the federal tax obligation. The change takes effect for taxable years beginning after December 31, 2024, eliminating the tax requirement for future reporting periods. The bill focuses solely on repealing the existing tax provision without altering other gambling regulations.
This bill imposes a $550 tax on each heavy battery module (over 1,000 pounds) and a $1,000 tax on each electric vehicle sold by manufacturers or importers. It excludes hybrid vehicles from the tax definition, as they use both internal combustion engines and rechargeable batteries. The collected revenue would be transferred to the Highway Trust Fund, which finances road and highway maintenance. The tax applies to sales after December 31, 2025.
This bill (S 2773, the WAGER Act) removes an excise tax on sports betting wagers that comply with state laws or tribal gaming compacts. It directly affects sports betting operators and bettors in states where sports betting is legal, as well as tribal gaming operations with approved compacts. The key provision exempts wagers placed on sporting events from the tax, provided they are not prohibited under state law or tribal agreements. The change applies to wagers placed after the bill becomes law.
The Universal Savings Account Act of 2025 creates a new tax-advantaged savings account type (Universal Savings Account or USA) for individual taxpayers. These accounts would be exempt from income tax on growth and earnings, with annual contribution limits starting at $10,000 (capped at $25,000) and adjusted annually for inflation. The bill directly affects individual savers who open USAs through qualifying financial institutions (like banks), subject to rules requiring cash-only contributions, non-forfeitable balances, and restrictions on life insurance investments. It amends the Internal Revenue Code to establish this new account structure, effective for taxable years after December 31, 2024.
S 1169, the "Freedom from Unfair Gun Taxes Act," prohibits states and local governments from imposing excise taxes on the sale of firearms, ammunition, or firearm parts during interstate or foreign commerce. This directly affects firearm manufacturers and dealers who sell across state lines, preventing them from facing state-level taxes on those transactions. The bill explicitly states it does not change the Pittman-Robertson Wildlife Restoration Act, which allows separate federal excise taxes on firearms for conservation funding. The key provision is a blanket ban on state taxes for interstate firearm sales, aiming to standardize tax treatment across state lines.
