Home/All Topics/OBBBA Text(a) In general.— (1) IN GENERAL.—Section 529(c)(7) is amended to read as follows: “(7) TREATMENT OF ELEMENTARY AND SECONDARY TUITION.—Any reference in this section to the term ‘qualified higher education expense’ shall include a reference to the following expenses in connection with enrollment or attendance at, or for students enrolled at or attending,…

Home/All Topics/OBBBA Text(a) In general.—Section 127(c)(1)(B) is amended by striking “in the case of payments made before January 1, 2026,”. (b) Inflation adjustment.—Section 127 is amended— (1) by redesignating subsection (d) as subsection (e), and (2) by inserting after subsection (c) the following new subsection: “(d) Inflation adjustment.— “(1) IN GENERAL.—In the case of any…

Home/All Topics/OBBBA Text(a) Allowance of credit for contributions of individuals to scholarship granting organizations.— (1) IN GENERAL.—Subpart A of part IV of subchapter A of chapter 1 is amended by inserting after section 25E the following new section: “SEC. 25F. Qualified elementary and secondary education scholarships. “(a) Allowance of credit.—In the case of an individual…

Home/All Topics/OBBBA TextSEC. 70401. Enhancement of employer-provided child care credit. (a) Increase of amount of qualified child care expenditures taken into account.—Section 45F(a)(1) is amended by striking “25 percent” and inserting “40 percent (50 percent in the case of an eligible small business)”. (b) Increase of maximum credit amount.—Subsection (b) of section 45F is amended…

Home/All Topics/OBBBA Text(a) In general.—Paragraph (2) of section 21(a) is amended to read as follows: “(2) APPLICABLE PERCENTAGE DEFINED.—For purposes of paragraph (1), the term ‘applicable percentage’ means 50 percent— “(A) reduced (but not below 35 percent) by 1 percentage point for each $2,000 or fraction thereof by which the taxpayer’s adjusted gross income for…

Home/All Topics/OBBBA Text(a) In general.—Section 129(a)(2)(A) is amended by striking “$5,000 ($2,500” and inserting “$7,500 ($3,750”. (b) Effective date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2025. ← Sec. 70403. Recognizing Indian tribal governments for purposes of determining whether a child has special needs for purposes of the…

Home/All Topics/OBBBA Text(a) In general.—Section 23(d)(3) is amended— (1) in subparagraph (A), by inserting “or Indian tribal government” after “a State”, and (2) in subparagraph (B), by inserting “or Indian tribal government” after “such State”. (b) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2024. ← Sec.…

Home/All Topics/OBBBA Text(a) In general.—Section 23(a) is amended by adding at the end the following new paragraph: “(4) PORTION OF CREDIT REFUNDABLE.—So much of the credit allowed under paragraph (1) as does not exceed $5,000 shall be treated as a credit allowed under subpart C and not as a credit allowed under this subpart.”. (b)…

Home/All Topics/OBBBA Text(a) Increase of amount of qualified child care expenditures taken into account.—Section 45F(a)(1) is amended by striking “25 percent” and inserting “40 percent (50 percent in the case of an eligible small business)”. (b) Increase of maximum credit amount.—Subsection (b) of section 45F is amended to read as follows: “(b) Dollar limitation.— “(1)…

Home/All Topics/OBBBA TextPART I—Foreign tax credit SEC. 70311. Modifications related to foreign tax credit limitation. (a) Rules for allocation of certain deductions to foreign source net CFC tested income for purposes of foreign tax credit limitation.—Section 904(b) is amended by adding at the end the following new paragraph: “(5) DEDUCTIONS TREATED AS ALLOCABLE TO FOREIGN…

Home/All Topics/OBBBA TextSEC. 70351. Permanent extension of look-thru rule for related controlled foreign corporations. (a) In general.—Section 954(c)(6)(C) is amended by striking “and before January 1, 2026,”. (b) Effective date.—The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2025. SEC. 70352. Repeal of election for 1-month…

Home/All Topics/OBBBA Text(a) In general.—Subsection (a) of section 951 is amended to read as follows: “(a) Amounts included.— “(1) IN GENERAL.—If a foreign corporation is a controlled foreign corporation at any time during a taxable year of the foreign corporation (in this subsection referred to as the ‘CFC year’)— “(A) each United States shareholder which…