Jobs Act. The bill also addresses the
“big three” business tax provisions:
deducting research and development
expenses, 100% bonus depreciation,
and loosening the rules for the
deductibility of business interest.
with
deducting research and development
expenses
For more there is (with my reformating of
the text):
HBK
Home / Insights / Proposed Tax Bill
Addresses Trump Campaign Promises and
Expiring TCJA Provisions
Proposed Tax Bill Addresses Trump Campaign
Promises and Expiring TCJA Provisions
Date May 15, 2025
Earlier this week, the House Ways and
Means Committee released details of a
multi-trillion-dollar tax-cut bill. The
legislation closely follows President
Donald Trump’s campaign promises of no tax
on tips and overtime, tax breaks for
seniors and car buyers, and extension of
much of the expiring 2017 Tax Cuts and
Jobs Act. The bill also addresses the “big
three” business tax provisions: deducting
research and development expenses, 100%
bonus depreciation, and loosening the
rules for the deductibility of business
interest.
Key Provisions
(1) Permanent extension of individual
income tax rates (no new millionaire’s tax
rate)
(2) Permanent extension of the higher
standard deduction with temporary
increases for 2025 through 2028
(3) Additional $4,000 standard deduction
for seniors (subject to income
limitations)
(4) Estate and gift exemption increased to
$15MM
(5) State and local tax deduction is
increased from $10,000 to $30,000 (subject
to income limitations)
(6) Child tax credit of $2,000 made
permanent with an increase to $2,500 for
2025 through 2028
(7) Return of the $300/$600 above-the-line
deduction for charitable contributions
(8) 100% bonus depreciation for assets
placed in service after 1/19/25 and before
1/1/2030
(9) Full expensing of Section 174 domestic
research and experimental expenses for
2025 through 2029
(10) Increase in the Section 179 deduction
to $2.5MM with the phaseout beginning at
$4MM
(11) Qualified business income deduction
made permanent and increased to 23%
(12) Addition of a special deduction for
“Qualified Production Property” which
allows 100% depreciation for manufacturing
buildings
(13) Eliminates many business, home and
vehicle energy tax credits
(14) Creating a new round of Qualified
Opportunity Zones with investor tax
benefits
There is still substantial debate to come
as this bill moves through Congress. We
will continue to monitor developments and
keep you updated on any changes that may
affect your tax situation. Please contact
HBK with any questions or to discuss how
these potential tax changes might impact
your specific financial circumstances.
So items (8) and (9) seem to have to do
with deducting "depreciation for
assets" and "Section 174".
Clearly "Section 174" is now, currently, an issue.
And vaguely I seemed to remember some Trump campaign statements that in taxes some business spending could be deducted instead of amortized (spread over several years) or some such.
I'm deliberately no expert on taxes or business taxes.
Some of the Internet discussions seemed to suggest that some of the worst of 174 were to be implemented, continued, canceled, whatever, so for more information on the background, status, future, etc. of 174, did a little Google search and came up with the discussion I posted here. That discussion seems to say that the "Big Beautiful Bill" may get rid of 174, and that would seem to be in the collection of deduction changes Trump discussed.
About the economy, growth, the Fed's Prime rate, deficit spending, interest payments on Treasury bonds, tariffs, inflation, the balances of trade and payments, R&D, AI, foreign investment in the US, 174, etc., to me the MSM (mainstream media) is short on enough credible information for me to have much in opinions.
In addition, for politics, mostly it looks like noise for some manipulation, effect, or other and a reason to follow "Always look for the hidden agenda."
So, about 174, the information I have looks no more credible and a lot less fun than an old Bugs Bunny cartoon! But maybe Bugs Bunny or Elmer Fudd would guess that getting rid of 174 would help R&D, new businesses, factories, business revenue, and even, net, tax revenue. Or did Elmer repeat "To make money, have to spend money."?
I'd scream at the junk -- drama -- in the MSM, but it won't do any good.
Summary: For the main issues here in the US, I just don't have good information. The stuff I posted above seems to suggest that the future of 174 is still in doubt.
at
https://hbkcpa.com/insights/proposed-tax-bill-addresses-trum...
is in part:
with For more there is (with my reformating of the text):HBK
Home / Insights / Proposed Tax Bill Addresses Trump Campaign Promises and Expiring TCJA Provisions
Proposed Tax Bill Addresses Trump Campaign Promises and Expiring TCJA Provisions
Date May 15, 2025
Earlier this week, the House Ways and Means Committee released details of a multi-trillion-dollar tax-cut bill. The legislation closely follows President Donald Trump’s campaign promises of no tax on tips and overtime, tax breaks for seniors and car buyers, and extension of much of the expiring 2017 Tax Cuts and Jobs Act. The bill also addresses the “big three” business tax provisions: deducting research and development expenses, 100% bonus depreciation, and loosening the rules for the deductibility of business interest.
Key Provisions
(1) Permanent extension of individual income tax rates (no new millionaire’s tax rate)
(2) Permanent extension of the higher standard deduction with temporary increases for 2025 through 2028
(3) Additional $4,000 standard deduction for seniors (subject to income limitations)
(4) Estate and gift exemption increased to $15MM
(5) State and local tax deduction is increased from $10,000 to $30,000 (subject to income limitations)
(6) Child tax credit of $2,000 made permanent with an increase to $2,500 for 2025 through 2028
(7) Return of the $300/$600 above-the-line deduction for charitable contributions
(8) 100% bonus depreciation for assets placed in service after 1/19/25 and before 1/1/2030
(9) Full expensing of Section 174 domestic research and experimental expenses for 2025 through 2029
(10) Increase in the Section 179 deduction to $2.5MM with the phaseout beginning at $4MM
(11) Qualified business income deduction made permanent and increased to 23%
(12) Addition of a special deduction for “Qualified Production Property” which allows 100% depreciation for manufacturing buildings
(13) Eliminates many business, home and vehicle energy tax credits
(14) Creating a new round of Qualified Opportunity Zones with investor tax benefits
There is still substantial debate to come as this bill moves through Congress. We will continue to monitor developments and keep you updated on any changes that may affect your tax situation. Please contact HBK with any questions or to discuss how these potential tax changes might impact your specific financial circumstances.
So items (8) and (9) seem to have to do with deducting "depreciation for assets" and "Section 174".