HR137-119

What This Bill Does

The TCJA Permanency Act converts many temporary Tax Cuts and Jobs Act rules into permanent tax law. It keeps the lower individual rate structure, preserves the section 199A qualified business income deduction, maintains the higher standard deduction, keeps the $2,000 child tax credit and $500 other-dependent credit with high phaseout thresholds, keeps the $10,000 state and local tax deduction cap, preserves limits on mortgage-interest and casualty-loss deductions, continues the repeal of personal exemptions and miscellaneous itemized deductions, expands 529 plan uses for homeschool and K-12 costs, continues tax-free treatment for death or disability student-loan discharges, limits moving-expense relief to active-duty military moves, keeps the higher estate and gift tax exemption, and preserves higher AMT exemption amounts and phaseout thresholds. The bill's core choice is permanence: households and businesses get stability around TCJA tax cuts, while federal revenue falls relative to expiration.

Who Benefits and How

Individual taxpayers benefit because lower rate brackets, larger standard deductions, and higher AMT exemptions stay in place. Pass-through business owners benefit because the section 199A qualified business income deduction no longer expires. Parents benefit because the $2,000 child tax credit and $500 other-dependent credit remain available with high phaseout thresholds. High-net-worth estates benefit because the estate and gift tax exemption remains at the higher TCJA level. Homeschool families benefit because 529 accounts can cover curriculum, tutoring, testing, dual enrollment, and disability-related educational therapies.

Who Bears the Burden and How

Federal taxpayers bear the long-term revenue cost of permanently extending expiring tax cuts. The Internal Revenue Service must administer permanent TCJA rules, revised cross-references, inflation adjustments, and education-account expansions. State and local tax filers in high-tax states continue to face the $10,000 SALT deduction cap. Taxpayers with miscellaneous itemized deductions continue to lose deductions that existed before TCJA. Federal budget writers must absorb lower projected receipts when planning deficits, spending, and debt service.

Key Provisions

• Amends individual rate, standard deduction, child credit, and AMT provisions so TCJA settings do not expire.
• Extends the section 199A pass-through business deduction beyond its prior sunset.
• Expands 529 education savings accounts for homeschool and additional elementary and secondary expenses.
• Restricts SALT, mortgage-interest, casualty-loss, moving-expense, and miscellaneous itemized deduction rules on a permanent basis.
• Increases the estate and gift tax exemption and preserves tax-free student-loan discharges for death or total disability.