On July 4, President Trump signed H.R. 1, nicknamed the “One Big Beautiful Bill Act,” into law. The massive reconciliation bill includes several provisions that may interest employers. These include:
- Creation of a new type of individual retirement account, called Trump Accounts, that allow employers to contribute up to $2,500 per year without tax consequences to employees;
- Extension and expansion of the employer tax credit for specified paid family and medical leave benefits;
- Extension and expansion of the employer tax credit for employer-provided child care;
- Making permanent a tax provision that excludes specified employer student loan and interest payments from employee income; and
- New deductions that will allow employees to deduct, through 2028, up to $25,000 of tipped income and $12,500 of overtime income per year.
The bill also includes numerous immigration provisions, including significant increases to most immigration-related fees, and significant resources for enforcement of immigration laws.