House, Senate Comparisons on Tax Bill
Senate & House: How they Compare (and Differ) on Key Provisions of Tax Bill
As the “One Big Beautiful Bill” (OBBB), a massive budget reconciliation bill aimed at making significant changes to tax policy, government spending, and border security, makes it way through the Senate, numerous provisions between the House and Senate can begin to be assessed even in this premature stage.
While both the House and Senate versions share the core goals of extending the 2017 tax cuts, reducing non-military spending, and increasing border/defense funding, their approaches differ in some key areas.
While not a comprehensive review or analysis, this chart helps put some focus on how the Senate is viewing what their counterparts in the House have passed:
Note: The information below is based on publicly available details as of June 17, 2025. The Senate version is still under development, and specific provisions will change as it moves through the legislative process.
| Feature / Policy Area | House Version (Passed May 22, 2025) | Senate Version (Unveiled, currently under debate) |
|---|---|---|
| Overall Goal | Make permanent most of the provisions from the 2017 Tax Cuts and Jobs Act while: + Reduce non-military spending ($1.5 trillion in cuts). + Increase border security and defense funding. | Make permanent most of the provisions from the 2017 Tax Cuts and Jobs Act while: + Reducing non-military spending (pledged to also seek at least $1.5 trillion in cuts after House opposition). + Increase border security and defense funding. |
| State and Local Tax (SALT) Deduction Cap | Raises the SALT deduction cap from $10,000 to $40,000. $505,000 adjusted gross income limit. | Keeps the current $10,000 SALT deduction cap as a placeholder. |
| Qualified Business Income (QBI) Deductions | Increases the current QBI deduction from 20% to 23%. | Keeps the current 20% QBI deduction but adds minimums of $400 for businesses with at least $1,000 in QBI. |
| Child Tax Credit (CTC) | Increases the CTC to $2,500 through 2028 then reduces to $2,000. | Increases the CTC to $2,200 through 2028 then will be adjusted for inflation. |
| Tax on Tips & Overtime | Allows deductions on tipped income up to $155,000 annually for certain occupations. Statutory overtime is deductible again up to $155,000 annually. | Offers a more limited $25,000 max deduction for tipped income with a max income of $150,000. For overtime, includes a $25,000 deduction for joint filers with a max income of $150,000. |
| Research and Development (R&D) Tax Breaks | A shared bipartisan goal to restore immediate R&D expensing permanent, the House version temporarily restores immediate expensing for domestic R&D expenses from 2025 through 2026. This reverses a 2022 change requiring amortization over five years. | The Senate version makes R&D expensing permanent along with other key business breaks. |
| Bonus Depreciation | The House-passed bill would provide 100 percent bonus depreciation through 2029 for property acquired after January 19, 2025. The bill also proposes a special depreciation allowance for qualified production property used in agricultural or chemical production. | The Senate bill would make 100 percent bonus depreciation permanent for property acquired after January 19, 2025. The Senate bill does not include any special allowance for agricultural or chemical production property. |
| Senior Citizen Deductions | An enhanced provision of $4,000 expiring in 2028. | An enhanced provision of $6,000 expiring in 2028. |
| "Trump Accounts" | $5,000 non-taxable parental contributions for children 8 and under. A “baby bonus” $1,000 Federal match for kids born over the next four years. Accounts remain tax free growth of contributions up to $5,000 annually subject to capital gains taxes for early withdrawal. | The Senate made no changes to the House version. |
| Deduction for Car Loan Interest | Up to $10,000 annually for all qualifying cars with final assembly in the United States. Income phase outs are $100,000 for single filers and $200,000 for joint. | While the Senate has largely indicated it will follow the House's lead on the $10,000 deduction limit and the U.S. assembly requirement for new cars. |
| Clean Energy Tax Credits | Scales back many of the Inflation Reduction Act's clean-energy tax credits, with most consumer credits expiring end of 2025 and electric vehicle/new-build energy-efficient homes expiring end of 2026. Limits commercial credits through accelerated sunsetting and new eligibility restrictions. For example, the House version repeals wind and solar subsidies within 60-180 days. | Details are not as widely publicized, but it is widely believed that the Senate also will scale back some, if not all, of the TCJA clean energy and tax credits and those from the Inflation Reduction Act. For example, the Senate version has wind and solar subsidies ending over a two-year period. |
| Budget / Debt Ceiling | Passed a budget with: + $1.5 trillion in spending cuts. + $4 trillion debt limit increase. | Approved an amended budget resolution with an initial call for: + $4 billion in spending cuts, later pledged to seek at least $1.5 trillion in cuts. + $5 trillion debt limit increase. |
Other areas being discussed and likely will have some changes to these categories as well:
- Higher education
- Private foundations & endowments
- Medicaid
- Employer-provided childcare credits
- Family and medical leave credits
What’s Next?
The goal for Congressional passage for the OBBB has and continues to be July 4. The House and Senate are working to that artificial deadline to have a bill ready to be signed by President Trump. To that end, there is still an expectation that the Senate will vote on the bill next week. If that pattern continues to hold, there will be limited time for the House to vote again on the measure.
Taxpayers will likely hear more about this as details emerge and as the OBBB moves its way through the process in the coming days (and even hours). There will be more information available after what is likely to be more deliberation and discussion in the Senate and, while this helps give an update on where things stand as of this publication date and time, expectations are for some of this information to change quickly. We will continue to monitor the situation and provide updates when more details are available.
Disclaimer: This article provides general information and should not be considered professional financial or tax advice. Please consult with a qualified CPA or financial advisor for guidance specific to your individual business needs.
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