After months of headlines dominated by the other “T” word—tariffs—it’s refreshing to finally talk about something a little more familiar, a little more foundational, and frankly, a lot more relevant to how we live, save, and plan: Taxes.
You may have seen that the House passed a new proposal to extend and expand parts of the Tax Cuts and Jobs Act (TCJA)—what some are calling a “Big Beautiful Bill”—and it’s now working its way through the Senate. While nothing is final yet, the direction is clear: Washington is signaling a renewed interest in long-term tax policy that affects families, business owners, and retirees.
Here are the key provisions we’re watching closely—especially those that could impact many of you directly:
1. Enhanced Child Tax Credit
Families with young kids: this one matters. The proposal increases the Child Tax Credit in both value and accessibility. Not only would the per-child amount rise, but it would also be fully refundable, meaning families could benefit even if they don’t owe federal income taxes.
This is more than just a tax break—it’s a shift in how we think about supporting working families. For those of you navigating careers, kids’ soccer schedules, and college savings all at once, this could ease some pressure.
2. Increased Qualified Business Income (QBI) Deduction
For our clients who are business owners, contractors, or run pass-through entities (like S-Corps or partnerships), the proposed enhancements to the QBI deduction are significant.
Originally set to phase out in 2025, the extension would not only prolong this deduction but increase its scope—potentially allowing more business income to be deducted directly from your taxable income.
3. HSA Enhancements: Health Savings Accounts Get Healthier
HSAs are one of the most tax-advantaged tools out there—triple tax-free when used right—and this proposal recognizes that.
We’re talking higher contribution limits, more flexibility in how funds are used, and potential access for more people—not just those with high-deductible health plans.
If you’re self-employed, managing variable income, or just prefer to be proactive about health care costs, this could open up another layer of planning opportunity.
4. SALT Cap Adjustments: Relief for High-Tax States
If you’re living in a state with high income or property taxes—like New York, New Jersey, or California—you’ve likely felt the sting of the $10,000 SALT deduction cap.
This new bill proposes raising or even eliminating the cap for some households, which could provide much-needed relief and significantly lower taxable income for those in high-tax jurisdictions.
While not every client will benefit from this, those with strong earnings and sizable state/local tax burdens should definitely pay attention.
5. Estate Tax Exemption Made Permanent
This might not apply to everyone, but it’s important for those thinking generationally. Under the current TCJA rules, the estate tax exemption (now over $13 million per individual) was set to sunset in 2026. The new bill proposes to make this exemption permanent, shielding more assets from federal estate tax and giving families greater certainty in long-term planning.
If legacy and multi-generational wealth transfer are part of your story, this brings helpful clarity.
So, What Now?
This bill is not law—yet. But momentum is building. And for the first time in a while, we’re not just plugging holes or reacting to political noise. We’re looking at a potential re-shaping of the tax landscape for families, entrepreneurs, and people who want to align their money with their values.
At Zizzi Investments, we’re watching this closely on how the final version of this bill might play out.
