This bill, titled the Stop Subsidizing Private Jets of 2026, prevents taxpayers from deducting expenses related to private fixed-wing aircraft on their federal income tax returns. It directly affects individuals and businesses that purchase, maintain, or operate personal planes, effectively removing the tax benefit previously available for these costs. The law allows deductions only for specific exceptions, such as aircraft used for property transport, agriculture, firefighting, emergency medical services, or commercial activities like flight instruction and sightseeing tours. These changes will apply to any expenses incurred after December 31, 2025.
The Supporting Newborn Parents Act of 2026 creates a new tax credit of $2,000 for each child born to a taxpayer during the tax year. To receive this credit, parents must have earned income, with the maximum amount limited to 20% of their earnings, and the benefit phases out as family income rises. The bill allows parents to request an advance payment of the credit shortly after a child's birth by providing their information when applying for a Social Security number. Additionally, the legislation requires the Treasury to establish an online portal to help parents understand how to make elections regarding advance payments and estimated income figures.
The Homeownership Savings Act creates a new tax-advantaged account designed to help first-time homebuyers save for down payments and closing costs. This program allows individuals to deduct up to $3,000 annually from their federal income taxes for contributions made to a qualified homeownership savings account, subject to limits based on earned income and modified adjusted gross income. Contributions to these accounts are also excluded from federal income, Social Security, and unemployment taxes if made by employers, and funds withdrawn for approved housing expenses remain tax-free. The bill includes specific rules for account termination, penalties for non-qualified withdrawals, and requires trustees to file reports with the IRS. These tax provisions are scheduled to take effect for taxable years beginning after December 31, 2026.
The Afterschool for All Act significantly increases funding for the Community Learning Centers program, raising the annual appropriation from $1 billion to $10 billion for the fiscal years 2026 through 2035. This expansion aims to support after-school programs in elementary and secondary schools, directly benefiting students and educational institutions that rely on these grants. Additionally, the bill amends the name of the relevant section in the Elementary and Secondary Education Act to remove the term "21st Century," and it raises the corporate income tax rate from 21% to 22% for taxable years beginning after the law is enacted.
The No Tax on Overtime for All Workers Act aims to exclude specific types of overtime pay from federal income taxation. It directly affects workers who receive compensation for hours worked beyond a standard 40-hour week under certain collective bargaining agreements. The bill defines this tax-free overtime as pay exceeding the regular rate for work that is either required by the Fair Labor Standards Act or agreed upon in advance for periods of at least 40 hours per week. Additionally, it includes special provisions for employees covered by the Railway Labor Act, allowing tax-free treatment for overtime beyond scheduled or maximum duty hours as defined by their agreements. These tax benefits would apply to taxable years beginning after December 31, 2024.
The Millionaires Surtax Act introduces a new 10% tax on the portion of an individual's income that exceeds $2 million. This surcharge applies to high-income taxpayers starting with taxable years beginning after December 31, 2026, but the threshold is lowered to $1 million for those filing separately. The law includes specific adjustments for nonresident aliens, citizens living abroad, and charitable trusts, while explicitly excluding this new tax from calculations for other federal credits.
The Ending the Carried Interest Loophole Act changes how the IRS treats partnership interests given to employees for their work, specifically targeting financial managers and investment professionals. Under the new rules, these individuals must pay ordinary income tax on the value of their partnership shares at the time they receive them, rather than waiting until they sell the shares to pay lower capital gains taxes. The law also establishes a 10-year window during which any future profits earned from these shares are taxed as ordinary income instead of capital gains. Additionally, the bill repeals an existing tax provision that previously allowed certain carried interest payments to be classified as capital gains.
The Enhanced Small Business Growth Act of 2026 increases tax benefits for domestic manufacturers by raising the qualified business income deduction rate from 20 percent to 30 percent. To qualify, a business must derive at least 85 percent of its income from manufacturing tangible property, with at least 20 percent of production costs incurred within the United States. These changes apply to taxable years beginning after December 31, 2025, and modify how the deduction is calculated to ensure it is applied correctly.
The Skill Savings Account Act of 2026 creates a new type of tax-advantaged account designed to help eligible U.S. employees save money specifically for qualified education expenses. Under this bill, both employers and employees can contribute cash to these accounts without immediately paying income tax, provided the total contributions do not exceed $5,250 for employer contributions and $10,000 for employee contributions in a single year. Funds withdrawn from the account must be used exclusively for education costs to remain tax-free; otherwise, the distribution is taxed as income and subject to an additional 20% penalty for beneficiaries under age 65. The legislation also establishes specific rules for trust management and requires the Treasury Department to issue regulations within one year of enactment.
Clinical Trial Modernization Act This bill authorizes a grant program and provides certain exemptions to support the participation of individuals in clinical trials. Specifically, the bill authorizes a grant program to support outreach, education, and recruitment efforts for clinical trials that may benefit certain underrepresented populations or communities in need, such as rural or tribal areas. The bill also exempts from anti-kickback laws for federal health care programs (1) remuneration that is offered to cover participants' expenses to participate in clinical trials, (2) the provision of free digital health technologies to support participation of underrepresented populations in clinical trials, and (3) payment for participants' cost-sharing obligations in relation to clinical trials. Finally, the bill exempts up to $2,000 in remuneration that is received for participating in a clinical trial from income tax.
