The TRADES Act increases the tax rate on investment income for certain educational organizations from 8 percent to 15 percent. This change is designed to generate additional revenue that the Treasury Secretary will use to fund career and technical education programs for states. The new funding amount will be calculated based on the extra tax revenue collected in the previous year and transferred annually to support these educational initiatives. The provisions take effect for taxable years beginning more than 12 months after the law is enacted.
The INVEST Act amends the federal tax code to expand the Work Opportunity Tax Credit for employers who hire veterans with specific renewable energy skills. To qualify for this credit, a veteran must be certified by a local agency as having military training in renewable energy fields, a recent vocational degree in the sector, or a LEED certification from the U.S. Green Building Council. The legislation defines renewable energy broadly to include sources like solar, wind, and geothermal power. Additionally, the bill addresses tax implications for U.S. territories by providing compensation for any lost tax revenue and ensuring coordination between federal and local tax credits. These provisions will take effect for employees who start working for an employer after December 31, 2025.
The Gas Prices Relief Act of 2026 temporarily eliminates the federal excise tax on gasoline for fuel sold between the date of enactment and January 1, 2027. To maintain funding for highway and environmental projects, the Treasury Department will transfer money from the general fund to replace the lost tax revenue. The bill also directs the Treasury to enforce measures ensuring that fuel producers and dealers pass these tax savings directly to consumers through lower prices.
The American Families Gas Tax Relief Act temporarily eliminates federal excise taxes on gasoline, diesel, and kerosene for a period of 120 days starting on the date of enactment. This tax break is intended to lower fuel prices for consumers, with provisions requiring producers and dealers to pass the savings directly to buyers. The President has the authority to extend this holiday by an additional 90 days if economic conditions warrant it. To maintain funding for infrastructure and environmental programs, the government will transfer the lost tax revenue from the general treasury to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund.
This bill amends the Robert T. Stafford Disaster Relief Act to prioritize disaster resilience funding for vulnerable communities. It defines "environmental justice communities" (communities of color, low-income, or Tribal areas facing higher environmental risks) and "small impoverished communities" (under 50,000 people, economically disadvantaged), requiring FEMA to prioritize these groups for assistance. The bill increases federal funding coverage to 90% for mitigation projects in these communities (up from 75%) and mandates that projects account for future climate risks in design. It also creates a new federal database to track disaster spending and requires FEMA to provide outreach support to help eligible communities apply for funding.
This bill, known as the Protect Future Dividends Act, would allow individuals to receive tax-free payments from state sovereign wealth funds. It directly affects residents who might receive periodic payments from these state-established permanent funds, which are designed to benefit individual citizens rather than businesses or organizations. The key provision adds a new section to the Internal Revenue Code that excludes these specific payments from gross income, provided the funds are permanently established by state law, receive designated state revenue, and make payments based primarily on residency. The change would apply to payments received after the bill becomes law, allowing recipients to keep the full amount without federal income tax liability.
This bill proposes to pause the clean electricity production tax credit for two years, from October 1, 2025, through September 30, 2027. The change would affect electricity generators who currently receive tax benefits for producing clean energy during this period. Money that would have gone to the Treasury from these suspended credits would instead be transferred to the Strategic Petroleum Reserve's funding account. The legislation aims to redirect federal tax revenue to support petroleum stockpiles while temporarily reducing incentives for clean electricity production.
This bill proposes a new windfall profits tax on crude oil producers and importers, targeting companies that extract or import more than 300,000 barrels of oil per day. The tax rate would be 50% of the amount by which current crude oil prices exceed a baseline set at the 2025 average, with adjustments for inflation in subsequent years. Revenue collected from this tax would be placed in a dedicated fund and then rebated directly to individual taxpayers as a credit against their income taxes. The rebate amount would be calculated quarterly based on the total tax revenue collected and distributed to eligible individuals, with higher amounts for joint filers and income-based phase-outs. The bill applies to oil extracted or imported after December 31, 2025, and includes provisions for territories with mirror tax systems to receive equivalent benefits.
This bill redirects fuel tax revenue collected on Virgin Islands-produced fuel shipped to the U.S. to the Virgin Islands' own treasury instead of the U.S. Treasury. It directly affects the Virgin Islands government, which would receive these funds for local use. The key provision amends the Internal Revenue Code to require this redirection, effective after December 31, 2024.
HR 609, the Assuring Medicare's Promise Act of 2025, directs revenue from the net investment income tax (currently applied to investment income) into the Medicare Hospital Insurance Trust Fund. It expands the tax base to include certain business income for high-income individuals with modified adjusted gross income exceeding $400,000 ($500,000 for joint filers), with a phase-in to limit the tax increase. The bill ensures this tax revenue directly supports Medicare's hospital insurance program, applying to taxable years beginning after December 31, 2025. The changes do not alter the tax rate but broaden the income types subject to the tax for high earners.
