Red Alert: House Passes One Big Beautiful Bill Act
Today the House passed Senate Amendment to H.R. 1, otherwise known as The One Big Beautiful Bill Act (OBBBA). It now awaits signature by the President, which we expect should happen before July 4th holiday celebrations begin.
Throughout House and Senate consideration of the bill, we remained cautiously optimistic about our priorities, and we’re pleased to report that the final outcome is largely in line with our expectations.
Access the detailed analysis from our partners at Steptoe. (Council member login required).
How Did the OBBBA Land on The Council’s Issues?
- Maintains the House’s permanent extension of the 199A deduction, but retains the current 20% rate (instead of the House’s 23% rate)
- Maintains the current tax exclusion for employer-sponsored health insurance
- Maintains the Pass-Through Entity Tax (PTET) workarounds, allowing owners of pass-throughs to bypass the federal $40,000 SALT cap by paying state-level pass-through entity taxes
- Permanently restores the 163(j) business interest deduction at 30% of EBITDA
- Permanently extends the safe harbor for pre-deductible reimbursement of telehealth services under high-deductible health plan/HSA coverage
- Extends the crop insurance programs (Price Loss Coverage and the Agriculture Risk Coverage Program) through 2031
- Does not include the third-party litigation financing reform provision included in the earlier Senate version
- Does not include a moratorium on state regulation of AI models and systems
- Does not adopt the new CHOICE HRA incentives passed by the House
- Does not adopt the expansions to Health Savings Account allowable contributions passed by the House
Attend our Webinar Breaking Down Key Bill Details
Join us on Wednesday, July 9 at 1:30 PM ET for a webinar with Steptoe to go over the details of the bill that pertain to our industry.
The webinar will be recorded, and we encourage you to register even if you are unable to join to receive the recap/webinar recording. This webinar is exclusively for Council members.