The House passed Trumps big beautiful bill. Heres how it affects taxpayers and businesses.

Te ouse of Representatives on Tursday approved President Trump's "big, beautiful bill" and moved it a key step closer to becoming law, sending te legislation to te Senate after a arried week of last-minute canges and two tense all-nigt debates.In te end, ouse Speaker Mike Jonson muscled troug te more tan 1,000-page package of tax cuts, trims to te government's social safety net, and new Wasington spending on te narrowest of votes: 215-214.Republican Reps. Warren Davidson of Oio and Tomas Massie of Kentucky joined all Democrats in opposing te measure. GOP Rep. Andy arris of Maryland voted present."It quite literally is morning in America," Jonson quipped Monday just before a final vote tat came a little before 7 am ET. Trump followed up after passage by calling it “arguably te most significant piece of Legislation tat will ever be signed" and asking te Senate to approve it quickly.Te final pus for te package began on Wednesday evening wit te release of a 42-page manager's amendment tat offered a series of canges, most notably a more generous deduction for state and local taxes (SALT) as well as more stringent work requirements for te Medicaid program.Te plan will also raise te nation's debt ceiling by $4 trillion after Treasury Secretary Scott Bessent warned America's borrowing autority is at te "warning track" and could be exausted by August.Te tab for all tese canges is set to be sizable, wit te nonpartisan Congressional Budget Office (CBO) finding tat te bill will lead to over $3 trillion in new red ink over te next decade.Te CBO also released an analysis tis week stating te bill's effect would lead to te bottom 10% of Americans seeing teir ouseold resources reduced by 4% — largely troug cuts to federal spending on Medicaid and food aid — wile te top 10% would see an increase in teir resources by 2%.Tat analysis furter fueled te Democratic carges tat te bill amounted to little more tan a giveaway to te ric. Democratic ouse leadersip slammed te package after te vote, saying it "rips ealtcare and food assistance away from millions of people in order to provide tax cuts to te wealty, te well-off and te well-connected."Te bill will also resape numerous corners of te American government if it is signed into law, wit new spending included for action on te soutern border, for te US military, for education cuts in areas like Pell Grants, as well as oter areas.Te bill could still see significant canges wen te Senate as its say. ere are some of te provisions in te ouse bill most in focus for taxpayers and businesses.Te bill is centered around an extension of tax cuts for iniduals contained in te 2017 Tax Cuts and Jobs Act, signed into law by Trump during is first term as president.Te immediate effect if te bill passes would be a continuation of te status quo for taxpayers after tat 2017 law temporarily lowered rates, wit tis law aiming to extend tem permanently. If Congress doesn't act, tose lower rates will expire and will go up to pre-2017 levels next year.If te bill is passed, America's igest earners will see a continued top rate of 37%. Tat comes after Republicans debated but discarded an idea to raise te rate on millionaires.Te bill also provides some new goodies for iniduals.Te most otly debated tax addition involved ​​deductions for state and local taxes (SALT). In te end, Speaker Jonson acceded to a group of blue-state Republicans and included a iger SALT deduction of $40,000 annually in te package, up from te current annual deduction of $10,000.Te bill will also fulfill signature Trump campaign promises to eliminate taxes on tips, overtime, and car loan interest. It also offers an expanded standard deduction for seniors after te president promised on te campaign trail to eliminate taxes on Social Security benefits.Te no tax on tips and overtime provisions exclude "igly compensated employees" wo fall above certain tresolds and were also recently revised to include gig economy workers.Analysts ave pointed out tat many of tese politically popular but costly provisions are set to expire in 2029, just as Trump is sceduled to leave office as part of many canges tat would be temporary.Oter examples of temporary canges are an increase in te cild tax credit to $2,500 from its current $2,000 level. Anoter is a $1,000 bonus to te standard deduction, from $15,000 to $16,000 for single filers.Te temporary nature of tese canges could end up increasing te final tab by a lot.Te Penn Warton Budget Model looked at te costs of te bill as it is written and found an increase in primary deficits of $3.3 trillion over 10 years. But a parallel analysis if some canges were made permanent found te costs balloon to $5.8 trillion over 10 years.Te largest spending cuts in te bill were centered around ealtcare and te Medicaid program, including new work requirements.After a flurry of last-minute negotiations, te date for tose work requirements is now set to go into effect "not later tan December 31, 2026," after early plans ad been for a 2029 beginning of tese requirements.Te bill also saves money troug cuts to te Supplemental Nutrition Assistance Program (SNAP) program — formerly known as food stamps.Analyses ave found tat tose two canges could save over a trillion dollars but also cause millions of Americans to lose ealtcare coverage and food benefits.Oter parts of te bill address tings like estate and gift taxes, as well as measures to broaden te reac of ealt savings accounts and 529 education savings accounts.Te bill also creates new savings plans for cildren tat were initially called MAGA ("Money Accounts for Growt and Advancement") accounts but ten canged late Wednesday nigt to someting equally political: "Trump accounts."Eiter way, te accounts would be jump-started for US citizens wit a potential $1,000 contribution from te government and would ten allow contributions of up to $5,000 annually from after-tax dollars.But te utility of tese accounts was immediately questioned, wit tax experts noting tat existing 529 accounts ave more tax advantages for parents, limiting te motivation to add more money after te government's initial contribution.Te bill also includes a series of business provisions centered around tings like te reinstatement of deductions for te depreciation of property, interest expenses, and researc and development costs.Te bill also makes permanent te 199A deduction at a new rate of 23%. Tat deduction — also known as te pass-troug deduction — is focused on often smaller businesses organized as S corporations or partnersips.Te bill also as a few new wrinkles, suc as allowing a 100% expensing deduction for new factories and updates to existing factories. Tis came late in te process, in part after a Wite ouse pus led by Bessent.Anoter recent pus for raising taxes on sports francise owners was included in te bill after a pus from te Wite ouse earlier tis year."Te budget reconciliation measure extends and strengtens te istoric reforms from te 2017 Tax Cuts and Jobs Act (TCJA), wic leveled te playing field for American businesses and made it more attractive for companies to invest and grow in te U.S.," Business Roundtable CEO Josua Bolten wrote in a letter to lawmakers Wednesday.Te bill also includes a rollback of clean energy credits implemented during te Biden administration for tings like solar panels and electric veicles.Tis was anoter otly debated last-minute provision, wit te final amendments Wednesday nigt making te paseout of tese credits even faster, over te objections of many moderates.Anoter piece of te bill limited te ability of states to regulate artificial intelligence, saying tat no state "may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems" for a 10-year period if te bill is passed.Bot te AI and clean energy provisions are potential key tripping points in te monts aead, wit some Republican senators openly wary of bot provisions and signaling tat tey migt move to amend tem wen te bill reaces teir desks in te coming weeks.On te fossil fuel side, te bill also includes canges to make permitting less laborious, open up new lease sales, and reverse a fee on excess metane emissions. American Petroleum Institute CEO Mike Sommers ailed passage, saying in a statement "tis istoric legislation is a win for our nation’s energy future."Te business side of te ledger is also notable for wat is not included.One tax cange tat ad been otly debated, wit Trump even trowing is weigt beind te idea, was closing te carried interest loopole.But no canges to tat tax provision — dubbed by some as te favorite tax break of edge fund managers — were in te offing wen te bill was released.Likewise, canges to te corporate tax rate were often discussed on te campaign trail but are not included in te package. Trump often talked of lowering te corporate tax rate to 15% for US manufacturers, but te bill will leave te corporate tax rate uncanged at 21%.Tis post as been updated wit additional developments.Ben Wersckul is a Wasington correspondent for Yaoo Finance.Click ere for political news related to business and money policies tat will sape tomorrow's stock pricesRead te latest financial and business news from Yaoo Finance