Washington Update
Tax Extenders. At the time of this writing (April 2025), there is a long path ahead for President Trump’s “big, beautiful” tax bill. The bill would extend tax cuts and make changes to provisions enacted in the 2017 Tax Cuts and Jobs Act. Many provisions in the bill, including Section 199A(g), the deduction for farmer cooperatives, will expire at the end of 2025 without action by Congress. The bill will also include Republican priorities such as border security, defense, changes to U.S. energy policies, and cuts to federal spending. Each step of the bill process is certain to be contentious, and the budget resolution was no exception. As the first step toward passage, the budget resolution establishes the parameters for the House and Senate to negotiate a tax package. In early April, the House narrowly approved the Senate’s version of the budget resolution, allowing the relevant House and Senate committees to begin work on reconciliation legislation. By using reconciliation, the legislation can pass the Senate with a simple majority.
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