TCJA Permanency Act

The TCJA Permanency Act aims to prevent the scheduled expiration of several major tax provisions at the end of 2025. By amending the Internal Revenue Code, the bill would permanently lock in lower individual income tax rates across most brackets and maintain the nearly doubled standard deduction. It also proposes to keep the child tax credit at $2,000 per qualifying child and continue the 20 percent deduction for small business pass-through income, which are currently set to revert to older, less favorable rules.

For everyday citizens, the bill would preserve current tax filing simplifications, as the higher standard deduction allows most taxpayers to avoid the complex process of itemizing deductions. It also seeks to maintain the $10,000 cap on state and local tax (SALT) deductions and the increased exemption limits for the alternative minimum tax and the estate tax. Additionally, the legislation includes specific provisions for military personnel, such as making certain moving expense deductions exclusive to them and clarifying tax benefits for those serving in hazardous areas.