Tax Changes In The Final Budget Reconciliation Bill

On 3 July 2025, the House passed the Senate's version of H.R. 1, the budget reconciliation bill formerly known as the "One Big Beautiful Bill Act" (the Act). President Trump signed the Act into law on 4 July 2025. The legislation changed significantly over several iterations from its initial House committee-passed version through the final Senate amendment. Such changes were necessary to generate support, as Republican leaders navigated narrow margins in both chambers and responded to a shifting international tax policy environment.

The Act includes extensions of current tax provisions and makes many significant tax changes, which Congressional budget estimators indicate will reduce federal revenues by US$4.4 trillion during the next decade. This alert describes several of the material changes included in the legislation.