House Republicans on Monday (May 12) released the detailed tax provisions of their massive fiscal bill, outlining a Trump-aligned agenda that slashes taxes across the board while targeting elite universities, renewable energy incentives, and immigrant remittances. The package is the centerpiece of President Donald Trump’s “One Big, Beautiful Bill” — and comes after weeks of tense negotiations among GOP lawmakers.

While business interests won many of their top requests, the bill also weaves in Trump’s populist campaign pledges such as tax breaks on tips and overtime pay.

No tax hike for millionaires

Despite speculation, House Republicans rejected a proposal backed by Trump himself to raise the top income tax rate for individuals making more than $2.5 million annually. The bill would permanently retain the 37% top tax rate, avoiding its scheduled increase to 39.6% after 2025.

SALT deduction

The state and local tax (SALT) deduction cap would rise to $30,000 for couples ($15,000 for single filers), but would phase out at incomes above $400,000 for couples. Republicans from high-tax states like New York and California have already criticized the increase as insufficient, threatening to block the bill without more relief.

Big breaks for workers: Tips, overtime, and auto loans

Fulfilling key Trump campaign promises, the bill would make tips and overtime pay tax-exempt through 2028. It also offers deductions for interest on auto loans, all retroactive to January 1, 2025. These are among the most worker-facing elements in the proposal.

Ivy League, Private Foundations face steep taxes

In a major escalation of Trump’s culture war with elite academia, the bill would raise taxes on wealthy university endowments, moving from a 1.4% rate to as high as 21% based on endowment size and student population. Harvard, Yale, Stanford, MIT and Princeton would be among those hardest hit.

Private foundations — including the Gates Foundation — would also see new tiered tax rates up to 10%, depending on asset size. The provision is seen as part of a broader Republican effort to rein in powerful philanthropic entities.

EV and green energy credits slashed

The bill would eliminate electric vehicle tax credits by the end of 2026 and scale back credits for used and commercial EVs. Clean energy production and investment tax credits would be phased out by 2031, cutting short programs expected to last through 2032.

A nuclear energy production credit would also end in 2031. These moves mark a sharp rollback of President Biden’s climate agenda.

Bonus for senior citizens

Senior citizens, aged 65 and older, who don’t itemize their taxes would receive a $4,000 bonus on their standard deduction through 2028, phasing out individuals making more than $75,000 and couples making more than $150,000. 

New tax on immigrant remittances

The bill would impose a 5% tax on remittances sent abroad, a measure aimed at curbing money transfers to foreign countries. US citizens could apply for credits to offset the cost, but the tax will hit immigrant households hardest.

Wins for big business and manufacturers

Multinational corporations would see an extension of lower foreign income tax rates, while US manufacturers would get 100% depreciation for new “qualified production property” such as factories built during a second Trump term.

The bill also reinstates a temporary R&D tax deduction through 2029 — a top priority for the tech and manufacturing industries.

Child tax credit & ‘MAGA accounts’

The child tax credit would increase to $2,500 per child through 2028, before reverting to $2,000. The bill also introduces “MAGA Accounts” — new tax-exempt savings vehicles allowing up to $5,000 in annual contributions for children. Funds could be used for education, home buying, or launching small businesses.

Key House vote expected this week

The House Ways and Means Committee unveiled the tax provisions of the bill on Monday, with a committee vote scheduled for Tuesday and a full House vote expected before May 26. Republicans hope for Senate approval by July 4. With no Democratic support expected, the GOP must maintain near-total unity due to their narrow majorities in both chambers.

Senate revisions likely

House Speaker Mike Johnson expressed confidence the bill would pass the House by Memorial Day. The Senate, however, may revise major provisions. Trump and Republicans hope to deliver the final legislation by July 4.