On Friday, May 9, 2025, the U.S. House of Representativesâ€� Ways and Means Committee released the initial Chairman’s mark, containing partial text of the tax provisions for the budget reconciliation legislation now under consideration in the House.1  The released text includes provisions that would extend certain tax provisions of the 2017 Tax Cuts and Jobs Act (TCJA) scheduled to expire at the end of the 2025 tax year.  The proposed legislation seeks to make many of the expiring TCJA items permanent, with some modifications.  However, the released text omits a number of expiring TCJA items, such as the limitation on the deduction for state and local taxes (SALT).Â
WHY THIS MATTERS
Though only a limited number of tax provisions were released, the release signifies a significant step in the budget reconciliation process.  However, with only partial text available, it is difficult to determine the full impact the released provisions would have on global mobility programs, as the full scope of the legislation is unknown.  ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø LLP will issue a comprehensive report analyzing the effect the proposed legislation would have on global mobility programs once the remaining tax provisions are released.  Â
Proposed Tax Provisions of Interest to Global Mobility Programs
The list below highlights the proposed individual tax provisions that would potentially impact global mobility programs:
- Permanent extension of the lower regular income tax rate schedules for individuals;
- Permanent repeal of the moving expense deduction;
- Permanent repeal of the exclusion from gross income for qualified moving expense reimbursements;
- Permanent extension of the increased standard deduction, with a temporary increase for tax years 2025 through 2028;
- Permanent repeal of the personal exemption deduction;
- Permanent extension of the increased child tax credit, with modifications;
- Permanent extension of the credit for other dependents;
- Permanent extension of the increased Alternative Minimum Tax exemption and phase-out thresholds;
- Permanent repeal of miscellaneous itemized deductions;
- Permanent repeal of the limitation on itemized deductions for high-income earners;
- Permanent extension of the limitations on the itemized deductions for qualified residence interest and personal casualty losses.Â
As mentioned above, the proposed legislation only includes the extension of selected TCJA provisions scheduled to expire after 2025. Â The released text does not contain certain proposals that would be of significant interest to global mobility programs, such as the repeal of the SALT deduction cap and a proposal to modify the taxation of U.S. citizens living overseas,2 nor does it include any retaliatory tax measures against citizens of foreign countries that are deemed to impose discriminatory or extraterritorial taxes on U.S. citizens or corporations.3Ìý
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Next Steps
The Ways and Means Committee announced that it will release an amended Chairman’s mark which will include the text of the remaining proposed tax provisions to be included in the budget reconciliation legislation on Monday, May 12, ahead of the Committee markup scheduled for Tuesday, May 13, at 2:00 PM ET.
The remaining tax provisions are expected to include some of President Trump’s tax-related campaign proposals, as well as several tax increase measures.
Following the release of the Chairman’s mark, ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø LLP will issue a report analyzing the potential impact the legislation would have on global mobility programs if enacted into law.
FOOTNOTES:
1 Â For the text of the legislation, see
2  See “Bill Introduced to Modify Taxation of U.S. Citizens Living Overseasâ€� in GMS Flash Alert 2024-257 (December 23, 2024). Â
3  See “President Open to Doubling Tax Rates on Citizens, Corporations of Certain Foreign Countriesâ€� in GMS Flash Alert 2025-041 (February 21, 2025).Â
RELATED RESOURCE
"Legislative update: Ways and Means Committee releases text of TCJA extenders for budget reconciliation bill" in TaxNewsFlash (May 9, 2025), a publication of ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø LLP (U.S.).Â
Contacts
Martha Klasing
Partner, Washington National Tax � Global Mobility Services
ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in the U.S.
Rob Fagan
Senior Manager, Washington National Tax � Global Mobility Services
ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø in the U.S.
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