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Tracking 2025 Tax Legislation

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REFRESHER: TAX CUTS AND JOBS ACT (TCJA) OF 2017 

  • TCJA was passed via budget reconciliation and signed into law in December 2017
  • Many changes to the tax code that impacted:
    • Income tax rates, deductions, and exemptions; gift and estate taxes; business taxes; and much more 
  • Most of its provisions went into effect on January 1, 2018, and are scheduled to expire on January 1, 2026

 

POTENTIAL 2025 LEGISLATION: “ONE BIG BEAUTIFUL” BILL
Current and Projected Legislative Timeline: 
timeline

Senate Finance Committee Tax Bill Key Provisions: 

  • Maintains the TCJA $10,000 limit for state and local tax (SALT) deduction
  • Maintains the TCJA 20% qualified business income deduction
  • Maintains the House Proposal for increasing estate, gift, and generation-skipping transfer (GST) exemptions to $15 million per person
  • Maintains the House Proposal for individual income tax rates and brackets (expands exceptions for the 24% to 37% bracket)
  • Introduces permanent Qualified Opportunity Zone (QOZ) program
  • Expands the “qualified small business stock” (QSBS) tax exemption under IRC Section 1202
COMPARISON OF KEY PROVISIONS
House of Representatives (as of May 22, 2025) vs. Senate Finance Committee (as of June 17, 2025)  
1
SENATE FINANCE COMMITTEE PROPOSAL
INDIVIDUAL TAX PROVISIONS (PROPOSED SENATE TAX BILL, as of June 17, 2025)

Permanent Extensions: The following provisions of TCJA would be made permanent by the Proposed Senate Tax Bill and include some additional changes.  

2
INDIVIDUAL TAX PROVISIONS (PROPOSED SENATE TAX BILL, as of June 17, 2025)

Permanent Extensions (continued): The following provisions of TCJA would be made permanent by the Proposed Senate Tax Bill and include some additional changes.

3
BUSINESS TAX PROVISIONS (PROPOSED SENATE TAX BILL, as of June 17, 2025)

TCJA Extensions: The following provisions of the TCJA would be made permanent by the Proposed Senate Tax Bill and includes some additional changes.

4

 

ADDITIONAL PROVISIONS (PROPOSED SENATE TAX BILL, as of June 17, 2025)

The Proposed Senate Tax Bill contains additional provisions not noted above. Some key provisions are:

  • Modification of various international tax provisions (Chapter 3)
  • Changes to tax rules for foundations, colleges, universities, and other tax-exempt organizations (Chapter 4)
  • Changes to clean energy tax provisions (Chapter 5)
  • Net operating losses for pass-throughs (Chapter 6)
  • Employee retention tax credit (Chapter 6)
  • Earned income tax credit (Chapter 6)
HOUSE OF REPRESENTATIVES PROPOSAL
SUBTITLE A: INDIVIDUAL TAX POLICY (PROPOSED HOUSE TAX BILL, as of May 22, 2025)

Permanent Extensions: The following provisions of TCJA would be made permanent by the proposed bill and include some additional changes.  

5
SUBTITLE A: INDIVIDUAL TAX POLICY (PROPOSED HOUSE TAX BILL, as of May 22, 2025)

Permanent Extensions (continued): The following provisions of TCJA would be made permanent by the proposed bill and include some additional changes.

6

 

SUBTITLE B: BUSINESS TAX POLICY (PROPOSED HOUSE TAX BILL, as of May 22, 2025)

TCJA Extensions: The following provisions of TCJA would be extended by the proposed bill and include some additional changes.  

7

 

 

 

SUBTITLE C: PAY-FORS (PROPOSED HOUSE TAX BILL)

Subtitle C contains provisions for Revenue Raisers (Part 1), Tax Credit Eligibility (Part 2), and Improper Payments and Recapture of Excess Premium Tax Credits (Part 3) — some key provisions are below:

  • Modification of various international tax provisions (Part 1, Sections 111004-111005)
  • Changes to clean energy tax provisions (Part 1, Sections 112001 to 112016)
  • Changes to tax rules for foundations, colleges, universities, and other tax-exempt organizations (Part 1, Sections 112020–112025)
  • Net operating losses for pass-throughs (Part 1, Section 112026)
  • Employee retention tax credit (Part 3, Section 112205)
  • Earned income tax credit (Part 3, Section 112206)

City National Rochdale’s Private Wealth Solutions team specializes in educating and assisting clients with making these important financial decisions with the Comprehensive Wealth Assessment. City National Rochdale’s Comprehensive Wealth Assessment is a complimentary, holistic service that focuses on identifying gaps and solutions, and empowers clients to make informed decisions. We pair sophisticated financial tools and modeling techniques with a personal approach to illustrate for you the financial benefits advance planning can help deliver.

 

To learn more, contact your Financial Advisor. You can also visit us at www.cnr.com, or email us at citynationalrochdale@cnr.com.

Sources:

Senate Finance Committee Legislative Text Title VII, Pulled June 18, 2025

United States House Committee on Ways & Means, Pulled June 1, 2025

Congress.gov, H.R.1 — One Big Beautiful Bill Act 119th Congress (2025-2026), Pulled June 1, 2025

Amendment to Rules Committee Print 119-3 Offered by Mr. Arrington of Texas, Pulled June 1, 2025

Important Information

 

This document is for general information and education only. It is not meant to provide specific tax guidance. The information in this document was compiled by the staff of City National Rochdale from data and sources believed to be reliable, but CNR makes no representation as to the accuracy or completeness of the information. The opinions expressed, together with any estimates or projections given, constitute the judgment of the author as of the date of the presentation. CNR has no obligation to update, modify, or amend this document or otherwise notify you in the event any information stated, opinion expressed, matter discussed, estimate, or projection changes or is determined to be inaccurate.

 

City National Bank, its managed affiliates and subsidiaries, as a matter of policy, do not give tax, accounting, regulatory, or  legal advice. Rules in the areas of law, tax, and accounting are subject to change and open to varying interpretations. Any strategies discussed in this document were not intended to be used, and cannot be used for the purpose of avoiding any tax penalties that may be imposed. You should consult with your other advisors on the tax, accounting and legal implications of actions you may take based on any strategies or information presented taking into account your own particular circumstances.

 

This presentation (or any portion thereof) may not be reproduced, distributed, or further published by any person without the written consent of CNR.

 

City National Rochdale, LLC, is a SEC-registered investment adviser and wholly owned subsidiary of City National Bank. Registration as an investment adviser does not imply any level of skill or expertise. City National Bank and City National Rochdale are subsidiaries of Royal Bank of Canada.

 

© 2025 City National Rochdale. All rights reserved.

 

 

NON-DEPOSIT INVESTMENT PRODUCTS: • ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE 

 

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