TCJA Permanency Act

TCJA Permanency Act

This bill makes permanent provisions affecting individual and business taxpayers that were enacted in 2017 by the Tax Cuts and Jobs Act and are scheduled to expire at the end of 2025.

The bill makes permanent reductions in individual and capital gain tax rates.

The bill increases the standard tax deduction for individual taxpayers. It also increases and modifies the child tax credit and raises the contribution base for the tax deduction for charitable contributions.

The bill allows additional contributions to ABLE accounts (tax-exempt accounts designed to enable individuals with disabilities to save and pay for disability-related expenses). It exempts from taxation combat zone benefits of members of the Armed Forces serving in the Sinai Peninsula of Egypt and limits the deduction for moving expenses to active duty members of the Armed Forces.

Additionally, the bill

• expands the types of elementary and secondary school expenses eligible for payment from qualified tuition programs (529 programs);
• lowers to $750,000 the amount of mortgage debt eligible for an interest expense tax deduction;
• reinstates after 2023 the exclusion of income from the gross income of student loan borrowers for loan debt discharged due to death or total and permanent disability;
• makes permanent the limitation on the tax deduction for state and local taxes and denies a deduction for foreign real property taxes;
• makes permanent the tax deduction of the income of certain pass-through business entities;
• repeals the tax deduction for personal tax exemptions and the exclusion of employer-provided bicycle commuter fringe benefits;
• terminates certain miscellaneous itemized tax deductions;
• doubles the estate and gift tax exemption amount; and
• makes permanent the increase of the alternative minimum tax exemption amount for individual taxpayers.

Bill 117 hr 8913, also known as the TCJA Permanency Act, is a piece of legislation introduced in the US Congress. The bill aims to make permanent the provisions of the Tax Cuts and Jobs Act (TCJA) that were set to expire in the future.

The TCJA, which was passed in 2017, made significant changes to the US tax code, including lowering individual and corporate tax rates, increasing the standard deduction, and limiting certain deductions. Many of these provisions were set to expire after a certain number of years, but the TCJA Permanency Act seeks to make them permanent.

Proponents of the bill argue that making these tax cuts permanent will provide certainty for businesses and individuals, stimulate economic growth, and create jobs. They also argue that the tax cuts have already had a positive impact on the economy and that making them permanent will continue to benefit taxpayers. Opponents of the bill, however, argue that making the tax cuts permanent will disproportionately benefit the wealthy and increase the federal deficit. They also argue that the tax cuts have not had the promised economic benefits and that making them permanent will only exacerbate income inequality. Overall, the TCJA Permanency Act is a controversial piece of legislation that has sparked debate among lawmakers and the public. Its fate in Congress remains uncertain as both sides continue to push for their respective positions.