What does Preamble of TCJA Permanency Act do?

This bill aims to amend the Internal Revenue Code of 1986 The amendment seeks to make certain Tax Cuts and Jobs Act provisions permanent These provisions affect individuals, families, and small businesses

What does SHORT TITLE, ETC. of TCJA Permanency Act do?

This Act is formally titled the "TCJA Permanency Act". Amendments or repeals within this Act refer to sections or provisions of the Internal Revenue Code of 1986. Title I of Public Law 115-97 may be cited as the "Tax Cuts and Jobs Act".

What does MODIFICATION OF RATES. of TCJA Permanency Act do?

This section modifies tax rates for various filing statuses. New tax brackets are established for married individuals, heads of households, and unmarried individuals. Estates and trusts have revised tax brackets. Inflation adjustments are made to tax brackets. Conforming amendments are made to other sections of the tax code.

What does DEDUCTION FOR QUALIFIED BUSINESS INCOME. of TCJA Permanency Act do?

This section amends Section 199A by striking subsection (i). The amendments apply to taxable years beginning after the enactment date.

What does LIMITATION ON LOSSES FOR TAXPAYERS OTHER THAN CORPORATIONS. of TCJA Permanency Act do?

This section amends Section 461 of the Internal Revenue Code regarding limitations on business losses. For taxpayers other than corporations, any excess business loss for a taxable year will not be allowed. Subsection (j) and (k) of Section 461 are redesignated as subsections (j) and (k) respectively. Several sections (58(a)(2)(A), 461(i)(4), 464(d)(2)(B)(iii), 1256(e)(3), and 1258(d)(5)(C)) are amended to reflect the changes to Section 461. These amendments apply to taxable years beginning after the date of enactment of this Act.

What does INCREASE IN STANDARD DEDUCTION. of TCJA Permanency Act do?

This section amends the standard deduction amounts in Section 63(c)(2). The standard deduction for certain filers is increased to $18,000 and $12,000. The amendments include an inflation adjustment for the dollar amounts. A conforming amendment strikes paragraph (7) from Section 63(c). The amendments apply to taxable years beginning after the enactment date.

What does INCREASE IN AND MODIFICATION OF CHILD TAX CREDIT. of TCJA Permanency Act do?

This section amends Section 24 to modify the Child Tax Credit. It establishes a credit of $2,000 for each qualifying child and $500 for each qualifying dependent (other than a qualifying child). The credit is reduced if the taxpayer's modified adjusted gross income exceeds $400,000 (or $200,000 for other cases) by $50 for each $1,000 above that threshold. A 'qualifying child' is defined as a qualifying dependent under 17 at the end of the year, with a social security number included on the return. The refundable portion of the credit is modified, with a new inflation adjustment mechanism. Several sections are repealed or amended to conform to these changes, including subsections (i), (j), and (k) of Section 24, and Section 7527A of Chapter 77. The amendments apply to taxable years beginning after the date of enactment of this Act.

What does INCREASED LIMITATION FOR CERTAIN CHARITABLE CONTRIBUTIONS. of TCJA Permanency Act do?

This section amends the limitation for certain charitable cash contributions. The aggregate of such contributions is not to exceed 60 percent of the taxpayer's contribution base. Excess contributions are treated as charitable contributions in the 5 succeeding years.

What does INCREASED CONTRIBUTIONS TO ABLE ACCOUNTS. of TCJA Permanency Act do?

This section modifies contribution limits for Achieving a Better Life Experience (ABLE) accounts. Section 529A(b)(2)(B)(ii) is amended to remove a termination date of 'before January 1, 2026' for contributions from the compensation of individuals with disabilities. Section 25B(d)(1)(D) is amended to remove a termination date of 'made before January 1, 2026' regarding the Saver's Credit for ABLE contributions. The amendments made by this section apply to taxable years beginning after the date of enactment of this Act.

What does ROLLOVERS TO ABLE PROGRAMS FROM 529 PROGRAMS. of TCJA Permanency Act do?

This section amends Section 529(c)(3)(C)(i)(III) regarding rollovers to ABLE programs from 529 programs. The amendment removes the date restriction 'before January 1, 2026'. The amendments apply to distributions after the enactment of this Act.

Back to bills

TCJA Permanency Act

Last updated: 1/3/2025 · Introduced: 1/3/2025

Author: Vern Buchanan (R-FL)

TL;DR (AI)

The bill makes certain Tax Cuts and Jobs Act provisions permanent, affecting individuals, families, and small businesses.
It modifies tax rates for various filing statuses, establishes new tax brackets, and makes inflation adjustments to tax brackets.
The bill increases the standard deduction for certain filers to $18,000 and $12,000, with an inflation adjustment mechanism.
It establishes a credit of $2,000 for each qualifying child and $500 for each qualifying dependent, with a reduced credit for taxpayers with modified adjusted gross income exceeding $400,000.
The bill limits the aggregate deduction for state and local taxes to $10,000, prohibits deductions for foreign real property taxes, and limits the deduction for qualified residence interest to $750,000.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title, etc., and 22 more.

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TITLE II

-INCREASED EXEMPTION FOR ALTERNATIVE MINIMUM TAX MADE

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