After months of headlines dominated by the other “T” word—tariffs—it’s refreshing to talk about something actually related to real financial planning conversations: 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. Most other tax credits are non-refundable.
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’ athletic schedules, and college savings all at once, this could ease some pressure.
The new bill permanently extends the increased child tax credit and would temporarily increase the amount further from $2,000 to $2,500. There are still levels of income where eligibility for the Child Tax Credit phases out.
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. The biggest number to pay attention to here is the proposed increase in the QBI deduction from 20% to 23%.
3) 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. One of my favorite new provisions in the bill would be allowing gym memberships to count as qualified medical expenses up to a certain amount.
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: Some Relief for High-Tax States
If you’re living in a state with high income or property taxes—like New York, New Jersey, DC 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. This comes into play for someone itemizing their deductions instead of taking the standard deduction.
5) Estate Tax Exemption Made Permament
Under the current TCJA rules, the estate tax exemption (now over $13 million per individual) was scheduled 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 the exemption had been allowed to sunset, it would have potentially exposed a much greater number of people to owing estate taxes. This helps give the financial side of legacy planning and multi-generational wealth transfer a lot more clarity.
So, What Now?
This bill is not law—yet. However, with Republicans controlling congress, their stated goal has been to push a final version of this bill through in time for the President to sign it by the 4th of July. We’re thinking this has a pretty high likelihood to become law, with potentially only minor revisions to the current bill.
At Zizzi Investments, we’re watching this closely for any changes as the bill moves through the Senate. But in the meantime, we’re here to help you think through how we might incorporate any changes into our future planning conversations, depending on how things unfold.
