BiggerPockets Daily Key Provisions in the Latest Version of the Tax Bill Passed By the Senate
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Jul 2, 2025 A recent Senate-passed tax bill introduces significant changes for workers and investors alike. Key highlights include tax-free tips, increased child tax credits, and cuts to Medicaid. Real estate investors will find new insights on SALT caps and housing market incentives. Manufacturing credits for semiconductors and an endowment tax on elite colleges are also on the table. This legislation could reshape deductions for businesses and promote renewable energy, creating a ripple effect across various sectors.
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Key Tax Benefits for Workers
- Tax-free tips up to $25,000 and overtime up to $12,500 aid restaurant and gig workers significantly.
- Child tax credit rises to $2,200 per child and is now permanent and inflation-adjusted.
Major Medicaid Cuts Ahead
- Medicaid faces $1 trillion in cuts over 10 years, risking coverage for 12 million Americans.
- New work requirements for Medicaid and SNAP will impact lower-income households in expanded Medicaid states.
SALT Deduction Boost for Real Estate
- SALT deduction cap increases to $40,000 for five years, benefiting high-tax states like NY and CA.
- Senate preserves pass-through business workarounds to avoid SALT deduction limits for real estate partnerships.