Trump’s One Big Beautiful Bill undergoes some changes.
The Senate Finance Committee has released its version of the One Big Beautiful Bill, presenting changes different from those in the House legislation.
Republican lawmakers in both chambers will need to act swiftly, if they are to send the sweeping tax-cut and spending bill to President Donald Trump’s desk before July 4.
While both versions are broadly similar—they make the tax rates and income brackets of the 2017 Tax Cuts and Jobs Act permanent, for example—the Senate alternative made several changes.
Here are the differences between the House and Senate versions:
Pass the SALT
The State and Local Tax (SALT) Deduction, a federal tax break permitting deductions from state and local tax payments, has been a source of contention among lawmakers.
The House bill would raise the maximum deduction for SALT payments from $10,000 to $40,000 per household. The tax break would also be phased out for incomes over $500,000.
In the Senate version, the original $10,000 SALT cap would remain in place.
Child Tax Credit
Lawmakers in the lower chamber increased the popular Child Tax Credit to $2,500 through 2028, after which it will revert to $2,000.
Senators permanently raised it to $2,200 and indexed the tax credit to inflation.
Under current law, the Child Tax Credit is set at $2,000 per child and is scheduled to decrease to $1,000 next year.
Standard Deduction for Seniors
The expanded standard deduction for seniors is a notable component of the One Big Beautiful Bill. While both chambers include a bonus deduction for Americans 65 and older, the amount differs in size.
The House offers a deduction of up to $4,000 for individuals aged 65 and older. The Senate boosts the deduction to $6,000 and phases it out for high-income seniors.
Both versions would see the bonus deduction end after 2028.
No Tax on Tips
The One Big Beautiful Bill followed through on the president’s campaign promise to eliminate taxes on tips and overtime pay. The legislation provides a deduction for tipped income, which expires in 2028.
The House does not insert a cap, while the Senate version limits the deduction to $25,000.
Green Energy
Both chambers have added language to address green energy tax credits and other incentives introduced by President Joe Biden and the Inflation Reduction Act.
The main difference, however, is the timing.
While the House bill would abolish many clean tax credits for solar and wind projects within 60 days of the legislation’s passage, the Senate would allow a gradual phaseout through 2027. In some instances, the tax credits for geothermal, hydro, and nuclear initiatives would remain intact until 2036.
By Andrew Moran
