Big Beautiful Bill Part VI

I’m sure you are getting tired of reading these. Honestly, it is getting harder to read. Most of this is business taxes, which I honestly have gotten used to dealing with. I will keep going because I have not reached some of the really interesting parts, like Medicare. I really only skimmed these sections and tried to pick out the important parts, but did little research to try to understand it better, again, business taxes. I know for some of you this is important, so sorry for the quick summary, and if I got something wrong.

This next section 70401 to 70405 is looking at families and mostly dealing with childcare. These new laws expand support for families and businesses related to childcare and adoption. Businesses can get a larger tax credit, up to 40% (or 50% for small businesses),for helping provide childcare. Families adopting children will benefit from a partially refundable adoption tax credit (up to $5,000), and tribal governments will now be able to certify special needs status for Native American children. Employees will be allowed to set aside more tax-free money up to $7,500 for dependent care through work. Finally, the child and dependent care tax credit is made more generous, offering up to 50% of qualifying expenses for lower-income families, with a minimum benefit of 20% even for higher earners. These changes aim to reduce financial burdens and improve access to childcare and adoption support.

The next section, 70411 to 70413 are about tax benefits to helping with scholarships. These laws expand education related tax benefits. Those who donate to scholarships that support low and middle income K–12 students can claim a federal tax credit up to $1,700. Next employers can continue helping employees pay off student loans tax free up to $5,250. The 529 education savings accounts now can cover more K–12 expenses such as tutoring, books, tests, and therapies, with the tuition limit raised from $10,000 to $20,000 per year and the accounts can also be used for postsecondary credential programs including certifications, apprenticeships, and licenses, allowing more flexible funding for career-related education.

The next section 70421 to 70439 is about investments in community development and tax reforms to encouraging investment in underserved communities, supporting charitable giving, and reducing red tape. It extends and strengthens the Opportunity Zone program to help rural investment incentives. It expands the Low-Income Housing and New Markets Tax credit programs to boost affordable housing and community investment. It creates new rules for charitable deductions which raise the limit for those who do not itemize to $1,000 from $3,000 but the amount given must be over .5% of your income for individuals and 1% for corporations. This is meant to get people to give larger amounts to charities. It eases rules for residential builders and increases incentives for investing in small businesses. It provides a 25% tax exemption on loan interest tied to rural, farming, and aquaculture properties. It eliminates most taxes on making or transferring firearms (excluding high-risk types). It allows farmers who sell farmland to other farmers defer capital gains taxes over four years, and extends disaster-related tax relief. Finally, it increases the amount of assets REITs can hold in taxable subsidiaries from 20% to 25%, restoring a previous standard.

Hope this helps at least some.