On July 4, 2025, Congress passed a comprehensive domestic policy bill, called the One Big Beautiful Bill Act, which includes a range of tax breaks and provisions for various industries and groups. The legislation, signed into law by President Donald Trump, aims to prevent $4 trillion in scheduled tax increases set to take effect at the end of 2025 while introducing new economic incentives. Below are some lesser-known provisions included in the bill:
- Venture Capital Tax Break: A $17 billion expansion of a provision allows venture capitalists to earn certain profits tax-free, supporting investment in startups and emerging businesses.
- Private School Scholarship Credit: A $26 billion allocation creates a $1,700 tax credit for donations to organizations providing scholarships for private school attendance, aimed at expanding educational options.
- Rum Industry Relief: A $2 billion tax break benefits the rum industry, with indirect economic advantages for regions like Louisiana, supporting local production and jobs.
- Real Estate Investment Trusts: A $3 billion tax break, reinstated by Senate Republicans after initially being removed, supports real estate investment trusts, promoting property development and investment.
- Firearms Tax Exemption: The bill eliminates a $200 tax on firearm silencers and most guns covered under the National Firearms Act, except machine guns and destructive devices, at a cost of $1.7 billion. It also removes registration and ownership requirements for these items.
- Alaskan Fisheries and Whaling: Provisions include tax relief for Alaskan fisheries and an increased deduction for Alaskan whaling captains to purchase weapons and maintain boats, supporting traditional and commercial activities in the region.
- Spaceport Development: Tax incentives for spaceports aim to bolster the growing commercial space industry, fostering infrastructure development.
The megabill, passed by the House after extensive negotiations, incorporates these provisions alongside broader tax and spending measures, such as $46.5 billion for border wall construction and $150 billion for immigration enforcement. The Congressional Budget Office estimates the bill will increase the number of uninsured Americans by 11.8 million by 2034 due to Medicaid cuts, though it includes $50 billion over five years to support rural hospitals.
These tax breaks reflect a mix of economic priorities, from supporting niche industries to addressing broader policy goals. The legislation has sparked debate, with some lawmakers praising its economic benefits and others raising concerns about its fiscal impact and specific provisions.
