Legislative Movement on Capitol Hill
Congress returns to Washington this week facing a pivotal moment in President Trump’s domestic agenda. Following the Senate’s weekend passage of a revised budget resolution, attention now shifts to the House, where fiscal concerns and political divisions are already shaping the debate. With the Easter–Passover recess quickly approaching, the pressure to act is intensifying.
In the early morning hours of Saturday, April 5, the Senate passed an amended version of H.C.R. 14, the House-approved budget resolution, by a narrow 51–48 vote. The resolution lays the foundation for making the Tax Cuts and Jobs Act (TCJA) permanent and advancing a new round of tax relief.
The proposal also authorizes the Senate Finance Committee to enact up to $1.5 trillion in additional tax cuts and includes a provision to raise the federal debt ceiling by $5 trillion to support the package.
Senate Finance Committee Chairman Mike Crapo (R-ID) described the resolution as a united effort to prevent a $4 trillion tax hike on families and businesses, promising what President Trump called “one big, beautiful bill.”
While the vote is a key procedural step, the House must now pass an identical resolution in order to activate the reconciliation process, which would allow tax legislation to proceed with a simple majority.
How Will It Be Paid For?
A central point of debate is how to fund the proposed tax cuts, particularly the cost of permanently extending the TCJA:
- $3.8 trillion – Estimated cost of extending individual provisions
- $832 billion – Estimated cost of extending business provisions, including 100% bonus depreciation and full R&D expensing
- $5.5 trillion – Total 10-year cost of the package with interest
Source: Joint Committee on Taxation (JCT) and Chief of Staff Thomas Barthold, in a letter to Senate Democrats as cited by Law360 on April 6, 2025.
The Senate version includes just $4 billion in spending cuts. In contrast, the House version caps tax-related deficit increases at $4.5 trillion and ties the authorization of tax cuts to achieving at least $2 trillion in mandatory spending reductions.
Source: House framework details shared by Rep. Jodey Arrington (R-TX), Chair of the House Budget Committee, as reported by Law360.
What’s Next?
We anticipate greater clarity in the coming days as lawmakers work against the clock to align both chambers before the recess begins. If an agreement is reached, reconciliation will allow Republicans to begin crafting a final tax bill—which may include decisions on the future of R&D expensing, bonus depreciation, and business incentives.
ABGi will continue to monitor developments closely and provide timely updates on changes that may impact your tax position, credit eligibility, or compliance obligations.
Have questions?Reach out to us at advisors@abgi-usa.com to discuss your tax credit opportunities in light of these proposed changes.
Stay Informed
Don’t miss future updates on tax law changes, IRS guidance, and business incentives.Sign up below to receive ABGi’s weekly insights straight to your inbox.
To receive email updates on the latest 174 and R&D credit news, enter your email: