The bill makes the 2017 Trump tax cuts permanent, provide tax relief for families and small businesses, and encourage investment and manufacturing in the US. 

The US House Ways and Means Committee passed the One, Big, Beautiful Bill (Act) by the House of Representatives on 22 May 2025.

The bill now moves to the Senate.

The One, Big, Beautiful Bill, makes the 2017 Trump tax cuts permanent, provides additional tax relief for working families and small businesses, rewards investment and manufacturing in America.

Ways and Means Chairman Jason Smith (MO-08) said, “This bill represents an historic opportunity to deliver economic freedom for working families, farmers, and small businesses. The House has acted. Now the Senate must do its part and send this bill to President Trump’s desk.”

The measures on taxation align with an earlier draft approved by the Committee, though some changes were made.

Earlier, the US House Ways and Means Committee released a Description of Tax Provisions related to budget reconciliation recommendations, including proposals to extend key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) and other reforms on 12 May 2025.

The key changes are:

SALT deduction

The maximum SALT (state and local taxes) deduction will increase to USD 40,000 in 2025, up from the proposed USD 30,000. Starting in 2026, it will rise by 1% annually through 2033.

GILTI and FDII deductions

The scheduled reduction in GILTI and FDII deduction rates to 37.5% and 21.875%, respectively, will be repealed as proposed, but with minor changes. The GILTI deduction rate will decrease from 50% to 49.2%, and the FDII rate will drop from 37.5% to 36.5%.

BEAT rate increase repeal

The proposal to repeal the special rules increasing the BEAT rate from 10% to 12.5% remains, while the standard rate will rise from 10% to 10.1%.

The US House Ways and Means Committee issued a release after voting on 14 May 2025, to approve the tax provisions of the “One, Big, Beautiful Bill” (budget reconciliation legislation).