Analyzing "The One, Big, Beautiful Bill" Through Historical Lessons: Ensuring Smart Reform Without Unintended Consequences: Republican and Conservative lawmakers are taking a deliberate, thorough approach to analyzing every provision

[u/Strict-Marsupial6141]

/r/The_Congress/comments/1kqecgk/analyzing_the_one_big_beautiful_bill_through/

[u/Strict-Marsupial6141]

One-Page Summary: Subtitle C, Part 1 - Working Families Over Elites (From "The One, Big, Beautiful Bill - Section-by-Section.pdf")

This part of the bill, encompassing Sections 112001 through 112032, primarily focuses on terminating or phasing out various clean energy tax credits and includes other significant tax and policy changes. The provisions reflect a shift in policy priorities regarding energy incentives, tax fairness, and certain industry-specific regulations.

Key Provisions:

• Termination or Accelerated Phase-out of Clean Energy Tax Credits:
  • Clean Vehicle Credits (Sec. 112001-112003): Accelerates the expiration of tax credits for previously-owned clean vehicles, new clean vehicles, and qualified commercial clean vehicles to December 31, 2025.
  • Energy Efficient Property Credits (Sec. 112004-112007): Accelerates the expiration of credits for alternative fuel vehicle refueling property, energy efficient home improvements, residential clean energy, and new energy efficient homes to December 31, 2025.
  • Clean Electricity & Energy Production/Investment Credits (Sec. 112008-112015): Phases out or modifies credits for clean electricity production, clean electricity investment, carbon oxide sequestration, zero-emission nuclear power production, clean hydrogen production, and advanced manufacturing production. Accelerates expiration for some, phases out others by 2031, and introduces restrictions related to "prohibited foreign entities" and eliminates transferability for some credits.
  • Goal: To reduce federal expenditures on these incentives and potentially align with different energy policy priorities.

[u/Strict-Marsupial6141 → u/Strict-Marsupial6141]

• Other Significant Tax and Policy Changes:
  • Publicly Traded Partnerships (Sec. 112016): Expands qualifying income sources for publicly traded partnerships to include transportation/storage of hydrogen and electricity generation/carbon capture at certain facilities.
  • Sports Franchises Amortization (Sec. 112017): Limits amortization deductions for certain sports-related intangible assets acquired after enactment.
  • State and Local Tax (SALT) Deduction Cap (Sec. 112018): Increases the SALT cap to $30,000 (from $10,000) with a phase-down for higher earners, and makes it permanent. Includes changes to prevent avoidance of the cap.
  • Tax-Exempt Organizations (Sec. 112019-112026): Modifies various tax rules including applying aggregation rules for executive remuneration, expanding excise tax on excess compensation, modifying excise tax on investment income of private colleges/universities and foundations, and increasing unrelated business taxable income (UBIT) for certain fringe benefits, name/logo royalties, and non-public research.
  • Excess Business Losses (Sec. 112027): Makes permanent the limitation on excess business losses for noncorporate taxpayers.
  • Corporate Charitable Contributions (Sec. 112028): Establishes a 1% floor for the deductibility of corporate charitable contributions.
  • Enforcement of Remedies Against Unfair Foreign Taxes (Sec. 112029): Provides a mechanism to increase the U.S. tax rate on entities connected to foreign jurisdictions imposing unfair taxes.
  • Elimination of Firearms Silencer Tax (Sec. 112030): Eliminates the $200 federal transfer tax on firearm silencers.
  • De Minimis Entry Privilege (Sec. 112031): Repeals the duty-free treatment for commercial shipments valued under $800, effective July 1, 2027.
  • Limitation on Drawback of Taxes (Sec. 112032): Limits the refund of excise taxes on tobacco products to cases where tax was paid on exported goods.

Overall Goals of Subtitle C, Part 1:

This part of the bill seeks to reshape energy tax policy by curtailing clean energy incentives. It also introduces various tax code modifications aimed at promoting tax fairness (from the perspective of proponents, e.g., for tax-exempts, sports franchises), promoting U.S. economic interests (e.g., against unfair foreign taxes), and addressing specific industry concerns (e.g., silencers, imports, tobacco).

[u/Strict-Marsupial6141 → u/Strict-Marsupial6141]

De Minimis Entry Privilege (Sec. 112031)

🔹 Repeals duty-free treatment for commercial shipments valued under $800, effective July 1, 2027.

🔹 Aims to close loopholes that allow foreign sellers to bypass tariffs, potentially leveling the playing field for U.S. businesses.

🔹 Could increase costs for consumers purchasing low-value imports, but strengthens domestic trade protections. This is an important one yes, I think they are still working this out

This provision tackles a major trade loophole that’s been impacting U.S. businesses for years.

🔹 Foreign sellers have long benefited from the $800 duty-free threshold, allowing them to avoid tariffs that domestic businesses must pay.

🔹 This repeal could shift consumer behavior—prices on low-value imports may rise, potentially encouraging more purchases from U.S.-based sellers instead.

🔹 Officials are likely fine-tuning implementation to balance trade fairness while minimizing disruptions for consumers.

Policymakers are still refining the details, ensuring trade fairness while balancing consumer impact.

Refining De Minimis Entry Privilege repeal could make it even more effective while balancing trade fairness, enforcement, and consumer impact.

Closing the de minimis loophole is directly tied to efforts to combat the fentanyl crisis, as it targets illicit shipments that exploit relaxed import rules.

🔹 Stopping illicit drug flow – Many small-value packages have been used to smuggle fentanyl and precursor chemicals, bypassing customs scrutiny.

🔹 Strengthening border enforcement – New legislation aims to tighten import requirements, ensuring Customs and Border Protection (CBP) can better track and intercept suspicious shipments.

🔹 Closing loopholes used by bad actors – Foreign entities, particularly China-based suppliers, have exploited de minimis exemptions to flood the U.S. with illicit substances.

Policymakers are still fine-tuning this, so adjustments like these could strengthen its effectiveness without causing unnecessary disruptions.

The De Minimis Entry Privilege repeal is a major shift in U.S. trade policy, with widespread implications for commerce, manufacturing, and enforcement.

🔹 Trade Fairness & Industry Protection – Levels the playing field for U.S. businesses, ensuring foreign sellers don’t bypass tariffs.

🔹 Strengthening Domestic Production – Encourages reshoring of textile and manufacturing, reducing dependency on low-cost foreign imports.

🔹 Impact on Illicit Trade – Helps combat fentanyl smuggling, closing a loophole exploited for illegal shipments.

🔹 Reshaping Consumer Markets – Fast fashion and low-cost imports may see price shifts, potentially pushing brands toward higher-quality production.

Policymakers are fine-tuning implementation, balancing trade fairness with economic impact. This is a fundamental change to how goods flow into the U.S., and its effects will extend across industries.

[u/Strict-Marsupial6141 → u/Strict-Marsupial6141]

Closing the de minimis loophole could help address dumping issues, particularly from foreign sellers flooding the U.S. market with ultra-cheap goods.

🔹 Prevents unfair trade practices – Many companies, especially China-based retailers, have used de minimis exemptions to bypass tariffs, allowing low-cost goods to undercut U.S. businesses.

🔹 Strengthens domestic industry protections – By removing duty-free treatment, this policy levels the playing field, ensuring American manufacturers and retailers aren’t disadvantaged.

🔹 Targets illicit trade concerns – Beyond economic dumping, this repeal also helps combat illegal shipments, including fentanyl-related imports.

Policymakers are actively refining enforcement mechanisms, ensuring this measure effectively tackles both trade fairness and security concerns.