Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

November 21, 2023 R47846

Reference Table: Expiring Provisions in the
“Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)
November 21, 2023
Congressional Research Service
https://crsreports.congress.gov
R47846

link to page 4 link to page 4 link to page 4 link to page 5 link to page 5 link to page 6 link to page 6 link to page 6 link to page 7 link to page 7 link to page 7 link to page 8 link to page 8 link to page 8 link to page 9 link to page 9 link to page 10 link to page 10 link to page 10 link to page 10 link to page 10 link to page 11 link to page 11 link to page 12 link to page 12 link to page 12 link to page 13 link to page 13 link to page 13 link to page 13 link to page 14 link to page 14 link to page 15 link to page 15 link to page 15 link to page 16 link to page 4 link to page 18

link to page 4 link to page 18 Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

A variety of temporary changes enacted as part of P.L. 115-97, commonly referred to as the Tax
Cuts and Jobs Act (TCJA), are scheduled to expire. Many of these provisions affect individuals
and families and are scheduled to expire at the end of 2025. Others affecting businesses,
including pass-through businesses, are scheduled to expire between 2025 and 2028.
As Congress considers whether and to what extent to extend these temporary TCJA provisions,
Table 1 provides for each provision:
• a brief overview and how it will change upon the scheduled expiration of the
TCJA;
• the budgetary score, both at enactment and if extended permanently
• a negative number (-) generally indicates reduced revenues and hence an
increase in the deficit,
• a positive number (+) generally indicates increased revenues and hence a
reduction in the deficit;
• the relevant section of the TCJA;
• the amended section of the Internal Revenue Code (IRC); and
• the expiration date.
Budgetary Cost
At the time of the law’s passage, the Joint Committee on Taxation (JCT) estimated that the TCJA
would cost $1.5 trillion between FY2018 and FY2027.1 The Congressional Budget Office (CBO)
and JCT have estimated that extensions of all provisions that are scheduled to either expire or
become less generous would cost $3.5 trillion between FY2023 and FY2033, although most of
these effects would begin in FY2026. More detailed estimates of the provisions’ budgetary effects
can be found in CBO’s supplemental data.2
Delayed Onset Provisions
In addition to these expiring provisions, several TCJA provisions featured delayed onsets that are
expected to make certain tax benefits related to business—including those related to the R&D
expenditures—less generous and hence raise revenue. Congress may consider modifying those as
well. For more information on these provisions, see “Delayed Onset Tax Provisions in the TCJA”
on page 16.
Other Resources
For an overview of all the provisions enacted by the TCJA, including permanent provisions
which are not included below, see CRS Report R45092, The 2017 Tax Revision (P.L. 115-97):
Comparison to 2017 Tax Law. Other temporary tax provisions that were not enacted by the
TCJA—and which are commonly referred to as “tax extenders”—are also scheduled to expire at
the end of 2025. Consequently, their expiration coincides with the expiration of most of the
TCJA’s changes to individual income tax provisions. More information on those non-TCJA
expiring provisions can be found in CRS Report R47252, Expired and Expiring Temporary Tax

1 Joint Committee on Taxation, Estimated Budget Effects of The Conference Agreement for H.R.1, The Tax Cuts and
Jobs Act, December 18, 2017, JCX-67-17.
2 Congressional Budget Office, Budgetary Outcomes Under Alternative Assumptions About Spending and Revenues,
Supplemental Data, May 2023, https://www.cbo.gov/publication/59154#data.
Congressional Research Service

1

Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provisions (Including “Tax Extenders”). The list of all expiring tax provisions by year can be
found in the Joint Committee on Taxation publication JCX-1-23.3
Table 1. TCJA Expiring Provisions
Provision
TCJA
Scheduled Expiration of TCJA
Individuals and Families
Marginal tax rates are applied to a
Marginal rates wil revert to their permanent
Marginal tax
taxpayer’s taxable income to calculate their
pre-TCJA levels of 10%, 15%, 25%, 28%, 33%,
rates
income tax liability before any credits are
35%, and 39.6%. Aside from the first two
claimed. The range of income over which a
brackets (10% and 15%) these rates apply
JCT budgetary cost
particular rate applies and its associated
over different ranges of taxable income than
estimate of TCJA
rate is often called a tax bracket. These
the TCJA rates. These income ranges are
changes at
income ranges are annually adjusted for
annually adjusted for inflation.
enactment: -$1.2
inflation.
trillion (FY2018-

FY2027).
Under the TCJA, marginal rates are 10%,
IRC Section 1
12%, 22%, 24%, 32%, 35%, and 37%.

(Note: Taxes on capital gains and dividends

CBO budgetary cost
were not changed by the TCJA.)
estimate if TCJA
changes extended

permanently: -$1.8
Section 11001 of P.L. 115-97
trillion (FY2024-
IRC Section 1(j)
FY2033).

Expires 12/31/2025

To calculate taxable income, taxpayers
The basic standard deduction amounts wil
Standard
subtract the standard deduction from their
revert to their TCJA levels and then be
deduction
adjusted gross income (AGI) if the taxpayer adjusted for inflation.
does not itemize their deductions. The
JCT budgetary cost
For 2018, prior to the TCJA, the basic
standard deduction is the sum of the basic
estimate of TCJA
standard deduction amounts for 2018 would
standard deduction and, if applicable, the
changes at
have been $6,500 for single filers, $9,550 for
additional standard deduction for the blind
enactment: -$0.7
head of household filers, and $13,000 for
or elderly. The basic standard deduction
trillion (FY2018-
married taxpayers filing jointly.
amount varies by the taxpayer’s filing status
FY2027).
and is adjusted annually for inflation.

IRC Section 63
CBO budgetary cost
Under the TCJA, basic standard deduction
estimate if TCJA
amounts in 2018 were nearly doubled to
changes extended
$12,000 for single filers, $18,000 for head
permanently: -$1.0
of household filers, and $24,000 for
trillion (FY2024-
married joint filers. These amounts were
FY2033).
annually adjusted for inflation after 2018. In

2024, these amounts are $14,600, $21,900,
and $29,200, respectful y.

Section 11021 of P.L. 115-97
IRC Section 63(c)(7)

Expires 12/31/2025

3 Joint Committee on Taxation, List Of Expiring Federal Tax Provisions 2022 - 2034, January 18, 2023, JCX-1-23,
https://www.jct.gov/publications/2023/jcx-1-23/.
Congressional Research Service

2

link to page 6 link to page 6 Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provision
TCJA
Scheduled Expiration of TCJA
To calculate taxable income, taxpayers
Personal exemptions wil revert to their pre-
Personal
subtract the appropriate number of
TCJA levels and then be adjusted for
exemptions
personal exemptions for themselves, their
inflation.
spouse (if married), and their dependents
JCT budgetary cost
For 2018, prior to the TCJA, the personal
from their adjusted gross income (AGI).
estimate of TCJA
exemption amount would have been $4,150.
changes at

enactment: +$1.2
Under the TCJA, the personal exemption
IRC Section 151
trillion (FY2018-
amount was temporarily reduced to $0,
FY2027).
effectively suspending the provision.

CBO budgetary cost
Section 11041 of P.L. 115-97
estimate if TCJA
IRC Section 151(d)(5)
changes extended

permanently: +$1.6
trillion (FY2024-
Expires 12/31/2025
FY2033).

The child tax credit allows a taxpayer to
The child credit wil revert to its pre-TCJA
Child tax credit
reduce their federal income tax liability by
structure.
JCT budgetary cost
up to $2,000 per qualifying child. Lower-
Maximum credit: $1,000 per child
estimate of TCJA
income taxpayers with little or no federal
Maximum ACTC: $1,000 per child
changes at
income tax liability may be eligible to
Formula for the ACTC: 15% of earned
enactment: -$543.6
receive some or all of the credit as the
income above $3,000, up to the maximum
billion (FY2018-
refundable portion of the credit—the
credit
FY2027).
additional child tax credit, or ACTC. For
higher-income taxpayers, the credit amount Phaseout threshold: $75,000 unmarried

phases down if income exceeds the
taxpayers / $110,000 married taxpayers
CBO budgetary cost
phaseout threshold.
None of the parameters are adjusted for
estimate if TCJA
Maximum credit: $2,000 per child
inflation.
changes extended
permanently: -$592.5 Maximum ACTC: $1,400 per child (The

billion (FY2024-
ACTC is adjusted for inflation and equals
Taxpayers claiming the child credit (including
FY2033).
$1,700 in 2024.)
the ACTC) wil need to provide the child’s

Formula for the ACTC: 15% of earned
taxpayer ID number, which includes their
income above $2,500, up to the maximum
Social Security number (SSN) or, if they are
Both of these
credit
not eligible for an SSN, their individual
estimates include
taxpayer identification number (ITIN).
the budgetary
Phaseout threshold: $200,000
impact of the
unmarried taxpayers / $400,000 married

“Credit for other
taxpayers
IRC Section 24
dependents.”
Aside from the max ACTC amount, none
of the parameters are adjusted for inflation.

Taxpayers claiming the child credit
(including the ACTC) must provide the
child’s Social Security number (SSN).

Section 11022 of P.L. 115-97
IRC Section 24(h)

Expires 12/31/2025
Congressional Research Service

3

Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provision
TCJA
Scheduled Expiration of TCJA
The “credit for other dependents” or
The credit wil expire.
Credit for other
“other dependent credit” (ODC) allows
dependents
taxpayers to reduce their income tax
liability by $500 for each dependent that is
JCT budgetary cost
ineligible for the child credit. This includes
estimate of TCJA
older (nonchild) dependents, children
changes at
lacking an SSN, and children aged 17 years
enactment: Included
and older (as the child tax credit only
in the cost of the
applies to children under age 17).
child credit changes
(above).
The $500 amount per other dependent is
not adjusted for inflation. The ODC is

nonrefundable, meaning it cannot exceed
CBO budgetary cost
income tax liability.
estimate if TCJA
The total ODC amount is added to a
changes extended
taxpayer’s child tax credit amount (if any),
permanently:
and then subject to the same phaseout as
Included in the cost
the child credit (i.e., phaseout thresholds of
of the child credit
$400,000 married filing jointly, $200,000
changes (above).
other taxpayers, 5% phaseout rate).
Taxpayers do not have to provide an SSN
for ODC-eligible dependents.

IRC Section 24(h)(4)
Section 11022 of P.L. 115-97

Expires 12/31/2025
Above-the-Line Deductions
Only members of the Armed Forces can
All eligible taxpayers wil be able to claim an
Moving
claim an above-the-line deduction for
above-the-line deduction for moving
expense
moving expenses incurred as a result of
expenses incurred as a result of work at a
work at a new location (effectively
new location, subject to certain conditions
deduction
repealing this deduction for other
dealing with the individual’s employment
JCT budgetary cost
taxpayers). Other taxpayers are not eligible
status as well as the distance of the move.
estimate of TCJA
to claim this deduction.
(These conditions wil not apply to members
changes at

of the Armed Forces.)
enactment: +$7.6

billion (FY2018-
IRC Section 217(k)
FY2027).
Section 11049 of P.L. 115-97
IRC Section 217

CBO budgetary cost
Expires 12/31/2025
estimate if TCJA

changes extended
permanently: +$8.8
billion (FY2024-
FY2033).
Congressional Research Service

4

Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provision
TCJA
Scheduled Expiration of TCJA
Itemized Deductions
JCT budgetary cost estimate of TCJA changes to itemized deductions (e.g., wagering losses) at enactment: +$668 billion
(FY2018-FY2027).
CBO budgetary cost estimate of TCJA changes to itemized deductions (e.g., wagering losses) extended permanently: +$908
billion (FY2024-FY2033).
Taxpayers who itemize their deductions
Cash contributions to public charities wil
Charitable
can deduct charitable donations of cash or
generally be limited to 50% of the taxpayer’s
contributions
property to certain organizations, including
AGI.
public charities; federal, state, local, and
deduction

Indian governments; private foundations;
JCT budgetary cost
and other less common types of qualifying
IRC Section 170
estimate of TCJA
organizations.
changes at
There are limitations on the total dol ar
enactment and CBO
amount that can be deducted by a taxpayer
budgetary cost
in a given tax year. The limitations are
estimate if TCJA
defined as a percentage of the taxpayer’s
changes extended
adjusted gross income (AGI) and differ
permanently:
based on the form of the donation (cash or
Included in combined
property) and the recipient, with recipient
cost estimates of all
limits smaller for private foundations.
changes to itemized
deductions (above).
The TCJA temporarily increased the AGI
limit for cash donations made to public
charities from 50% to 60%. Other
limitations based on the form of the
donation and the recipient organization
were unchanged by the TCJA.

Section 11023 of P.L. 115-97
IRC Section 170(b)(1)(G)

Expires 12/31/2025
Taxpayers who itemize their deductions
The $10,000 cap on this deduction wil not
State and local
can deduct up to $10,000 in state and local
apply and hence taxpayers wil be able to
tax (SALT)
income, sales (in lieu of income), and
deduct all eligible state and local income,
property taxes, as well as foreign income
sales (in lieu of income), and property taxes,
deduction
taxes (but not foreign real property taxes). as well as foreign income taxes. Taxpayers
JCT budgetary cost
Property taxes associated with carrying on
wil be also able to deduct foreign real
estimate of TCJA
a trade or business are ful y deductible (i.e.,
property taxes.
changes at
not subject to a cap).

enactment and CBO
budgetary cost

IRC Section 164
estimate if TCJA
Section 11042 of P.L. 115-97
changes extended
IRC Section 164(b)(6)
permanently:

Included in combined
cost estimates of all
Expires 12/31/2025
changes to itemized
deductions (above).

Congressional Research Service

5

Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provision
TCJA
Scheduled Expiration of TCJA
Taxpayers who itemize their deductions
The $750,000 limitation wil increase to $1
Mortgage
may deduct interest paid on the first
mil ion of combined (first and second home)
interest
$750,000 ($375,000 for married filing
acquisition debt regardless of when the debt
separately) of mortgage debt (combined for was incurred. The interest on the first
deduction
first and second homes). The limitation
$100,000 of home equity debt wil also be
JCT budgetary cost
applies to new loans incurred after
deductible, regardless of whether or not the
estimate of TCJA
December 15, 2017.
taxpayer incurred the debt to finance costs
changes at
Taxpayers with mortgage debt incurred on
associated with the home.
enactment and CBO
or before December 15, 2017, who itemize
budgetary cost
their deductions may deduct interest on
estimate if TCJA
IRC Section 163(h)
the first $1 mil ion ($500,000 for married
changes extended
filing separately) of combined mortgage
permanently:
debt. No deduction is allowed for interest
Included in combined
payments made for new or existing home
cost estimates of all
equity debt if such debt is used for
changes to itemized
purposes unrelated to the property
deductions (above).
securing the loan.

Section 11043 of P.L. 115-97
IRC Section 163(h)(3)(F)

Expires 12/31/2025
Taxpayers who itemize their deductions
Taxpayers wil be able to claim an itemized
Personal
can generally claim a deduction only for
deduction for noncompensated personal
casualty and
noncompensated personal casualty and
casualty and theft losses regardless of
theft losses associated with a disaster
whether the losses result from a federally
theft loss
declared by the President under Section
declared disaster.
deduction
401 of the Robert T. Stafford Disaster

JCT budgetary cost
Relief and Emergency Assistance Act.
IRC Section 165(h)
estimate of TCJA
Casualty losses are generally deductible if
changes at
they exceed $100 per casualty, and to the
enactment and CBO
extent aggregate net casualty losses exceed
budgetary cost
10% of adjusted gross income (AGI).
estimate if TCJA

changes extended
Section 11044 of P.L. 115-97
permanently:
Included in combined
IRC Section 165(h)(5)
cost estimates of all

changes to itemized
Expires 12/31/2025
deductions (above).

Taxpayers who itemize their deductions
Gambling losses wil no longer include
Wagering
can deduct gambling losses, provided those
expenses incurred in carrying on the
losses
losses do not exceed gambling winnings
gambling activity. Professional gamblers wil
included in gross income. Gambling losses
be able to deduct ordinary and necessary
deduction
include deductible expenses incurred in
nonwagering business expenses.
JCT budgetary cost
carrying on the gambling activity, for both

estimate of TCJA
recreational and professional gamblers.
changes at
IRC Section 165(d)

enactment: +$0.1
billion (FY2018-
Section 11050 of P.L. 115-97
FY2027
IRC Section 165(d)

Expires 12/31/2025
Congressional Research Service

6

Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provision
TCJA
Scheduled Expiration of TCJA
CBO budgetary cost
estimate if TCJA
changes extended
permanently: +$0.1
billion (FY2024-
FY2033).

There is no itemized deduction for certain
Individual taxpayers who itemize their
Itemized
miscellaneous expenses such as
deductions wil be able to deduct
deduction for
unreimbursed employee expenses or tax
miscellaneous expenses to the extent that
preparation fees.
such expenses col ectively exceed 2% of their
miscellaneous

AGI. Expenses subject to the 2% floor wil
expenses
include unreimbursed employee expenses,
Section 11045 of P.L. 115-97
JCT budgetary cost
tax preparation fees, and certain other
estimate of TCJA
IRC Section 67(g)
expenses.
changes at

enactment and CBO
Expires 12/31/2025
IRC Sections 62, 67, and 212
budgetary cost
estimate if TCJA
changes extended
permanently:
Included in combined
cost estimates of all
changes to itemized
deductions (above).

The total amount of itemized deductions
For taxpayers with AGI above certain
Overall
that can be claimed by a taxpayer is the
thresholds, the total amount of itemized
limitation on
sum of all allowable itemized deductions
deductions wil be reduced by 3% of the
and there is no overall limitation on
amount by which their AGI exceeds the
itemized
itemized deductions.
threshold. (For 2018, before the TCJA, the
deductions

thresholds once adjusted for inflation would
JCT budgetary cost
have been $320,000 for married taxpayers
Section 11046 of P.L. 115-97
estimate of TCJA
filing jointly and $267,700 for singles.)
changes at
IRC Section 68(f)
The total reduction wil be capped at 80% of
enactment and CBO

the deductions. Itemized deductions not
budgetary cost
Expires 12/31/2025
subject to the limitation include deductions
estimate if TCJA
for medical and dental expenses, investment
changes extended
interest, charitable contributions, casualty
permanently:
and theft losses, and wagering losses.
Included in combined

cost estimates of all
changes to itemized
IRC Section 68
deductions (above).

Congressional Research Service

7

link to page 17 Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provision
TCJA
Scheduled Expiration of TCJA
Exclusionsa
Employer reimbursements for bicycle
Up to $20 per month of qualified employer
Bicycle
commuting expenses are considered wage
reimbursements for bicycle commuting
commuter
income and therefore subject to income
expenses wil be excludible from wage
and employment (i.e., “payrol ”) taxes.
income, and hence not subject to either
reimbursement

income or employment (i.e., “payrol ”) taxes.
JCT budgetary cost

estimate of TCJA
Section 11047 of P.L. 115-97
changes at
IRC Section 132(f)
IRC Section 132(f)
enactment: revenue

increase of less than
Expires 12/31/2025
$50 million (FY2018-
FY2027).

CBO budgetary cost
estimate if TCJA
changes extended
permanently: +$136
million (FY2024-
FY2033).
Employer reimbursements for moving
Qualified moving expense reimbursements
Moving
expenses are only excludible from income
from an employer wil be excludible from an
reimbursement
and wages for members of the Armed
employee’s wage income, and hence not
Forces and pursuant to a military order for
subject to either income or employment (i.e.,
exclusion
a permanent change of station. For all
“payrol ”) taxes.
JCT budgetary cost
other employees, such benefits are

estimate of TCJA
considered wage income and hence subject
changes at
to income and employment (i.e., “payrol ”)
IRC Section 132
enactment: +$4.8
taxes.
billion (FY2018-

FY2027).
Section 11048 of P.L. 115-97

IRC Section 132(g)(2)
CBO budgetary cost
estimate if TCJA

changes extended
Expires 12/31/2025
permanently: +$6.7
billion (FY2024-
FY2033).
Members of the Armed Forces serving in a
The Sinai Peninsula will not be statutorily
Combat zone
combat zone (and their families) are
presumed to be a combat zone. Unless the
tax benefits for
entitled to several tax benefits, including:
Sinai Peninsula is designated as a combat
zone under the usual process (IRC Section
members of the
(1) an exemption from income and
employment (“payrol ”) taxes on certain
112), members of the Armed Forces serving
Armed Forces
military pay received during any month in
in this area wil not be eligible for combat
in the Sinai
which the member served in a combat zone zone tax benefits.
Peninsula
(IRC Sections 112 and 3401(a)(1));

(2) an exemption from income taxes during
JCT budgetary cost
IRC Sections 2, 112, 692, 2201, 3401, 4253,
the year that the member dies and the year
estimate of TCJA
6013, and 7508
prior while serving in a combat zone (IRC
changes at
Section 692);
enactment: revenue
(3) special estate tax rules where death
loss of less than $50
occurs in a combat zone (IRC Section
2201);
Congressional Research Service

8

link to page 5 link to page 5 link to page 5 link to page 5 Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provision
TCJA
Scheduled Expiration of TCJA
million (FY2018-
(4) special benefits to surviving spouses
FY2027).
(IRC Sections 2(a)(3) and 6013(f)(1));

(5) an extension of tax deadlines, including
for filing returns, making payments, claiming
CBO budgetary cost
credits or refunds, and certain other
estimate if TCJA
deadlines (IRC Section 7508);
changes extended
(6) an exclusion of telephone excise taxes
permanently: -$7
(IRC Section 4253(d)).
million (FY2024-
FY2033).

Typically, combat zones are designated by
the President in an Executive Order as an
area where the Armed Forces are or have
engaged in combat. Under the TCJA, the
Sinai Peninsula is statutorily presumed to
be a combat zone.

Section 11026 of P.L. 115-97

Expires 12/31/2025
Alternative Minimum Tax
A tax is imposed at 26% on an individual’s
The AMT exemption and exemption
Alternative
alternative minimum taxable income, with a
phaseout wil revert to pre-TCJA levels and
minimum tax
higher rate of 28% applied to taxpayers
then both wil be adjusted for inflation.
with alternative minimum taxable incomes
(AMT)
For 2018, prior to the TCJA, the higher 28%
above $232,600 in 2024.
rate applied to incomes above $191,500 for
exemption and
Alternative minimum taxable income
married couples.
phaseouts
(AMTI) starts with taxable income, then
For 2018, prior to the TCJA, the exemption
JCT budgetary cost
adds back certain preference items (such as
amounts were $55,400 for singles/heads of
estimate of TCJA
net operating losses, depreciation, and
households and $86,200 for married couples
changes: -$637.1
passive losses all calculated under special
and the exemption phaseouts were $123,100
billion (FY2018-
AMT rules, state and local taxes,
for singles/heads of households and $164,100
FY2027).
miscellaneous business expenses, and
for married couples in 2018. (Note: Personal
personal exemptions), and then subtracts

exemptions wil again be in effect upon the
an AMT exemption amount. (Note:
expiration of the TCJA. See “Personal
CBO budgetary cost
Personal exemptions were effectively
exemptions.”)
estimate if TCJA
eliminated under the TCJA. See “Personal
changes extended
exemptions.”)

permanently:

IRC Section 55
-$1,088.4 billion
(FY2024-FY2033).
For 2024 the AMT exemption amounts are
$85,700 for singles/heads of households
and $133,300 for married couples. The

AMT exemption amount phases down
when a taxpayer’s income exceeds a
phaseout level. These levels are $578,150
for singles/head of households and
$1,156,300 for married couples.
These amounts are adjusted for inflation.

Section 12003 of P.L. 115-97
IRC Section 55
Expires 12/31/2025
Congressional Research Service

9

Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provision
TCJA
Scheduled Expiration of TCJA
ABLE Accounts
ABLE accounts are tax-favored savings
While the gift tax exclusion wil stil apply,
Achieving A
accounts intended to encourage qualifying
designated beneficiaries wil not be able to
Better Life
disabled individuals (referred to as
make the additional contribution of up to the
“designated beneficiaries”) to save money
lesser of the federal poverty level for a one-
Experience
for certain disability-related expenses (in a
person household or the beneficiary’s
(ABLE) account
tax-preferred way) without losing eligibility
compensation.
contribution
for certain federal means-tested programs,

such as Medicaid.
limit
IRC Section 529A
Generally, in a given year an ABLE account
JCT budgetary cost
cannot receive aggregate contributions in
estimate of TCJA
excess of the annual gift tax exemption,
changes at
which is $18,000 in 2024.
enactment: revenue
loss of less than $50
Under the TCJA, a designated beneficiary
million (FY2018-
who is employed can contribute an
FY2027).
additional amount to their ABLE account
(above the annual gift-tax exclusion

amount). The additional amount is equal to
CBO budgetary cost
the lesser of (1) the applicable federal
estimate if TCJA
poverty level for a one-person household
changes extended
in the prior year, or (2) the beneficiary’s
permanently: -$2
compensation for the year. A beneficiary
million (FY2024-
cannot contribute this additional amount
FY2033).
for the year if any contribution is made on
their behalf to certain defined contribution
plans.

Section 11024(a) of P.L. 115-97
IRC Section 529A(b)(2)(B)

Expires 12/31/2025
Designated beneficiaries who make
Designated beneficiaries wil not be able to
ABLE accounts
qualified contributions to their ABLE
claim the saver’s credit for their
and the saver’s
account can qualify for a nonrefundable
contributions.
saver’s credit of up to $1,000.
credit

JCT budgetary cost
Note: the SECURE 2.0 Act of 2022 (Section
estimate of TCJA
Section 11024(b) of P.L. 115-97
103 of P.L. 117-328) included a provision
changes at
IRC Section 25B(d)(1)(D)
aimed at promoting retirement savings
enactment: revenue
among low-income households that

loss of less than $50
effectively repeals the saver’s credit under
Expires 12/31/2025
million (FY2018-
IRC Section 25B and replaces it with a saver’s
FY2027).
match under IRC Section 6433, effective
1/1/2027.

CBO budgetary cost
estimate if TCJA
IRC Section 25B
changes extended
permanently:
included in the cost
of increasing the
contribution limit
(above)
Congressional Research Service

10

link to page 17 Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provision
TCJA
Scheduled Expiration of TCJA
Rol overs from a 529 account to an ABLE
All rol overs from 529 accounts to ABLE
529 to ABLE
account (plus any other contributions to
accounts wil be subject to taxation.
the account for the year) that are less than
account rollover or equal to the annual ABLE contribution

JCT budgetary cost
limit are not subject to income taxation,
IRC Section 529
estimate of TCJA
provided that the accounts have the same
changes at
designated beneficiary (or the designated
enactment: revenue
beneficiaries of the two accounts are
loss of less than $50
members of the same family). The portion
million (FY2018-
of the rol over (plus any other
FY2027).
contributions to the account) in excess of

the annual contribution limit is taxable.
CBO budgetary cost

estimate if TCJA
Section 11025 of P.L. 115-97
changes extended
IRC Section 529(c)(3)(C)(i)(III)
permanently: -$3
million (FY2024-

FY2033).
Expires 12/31/2025
Business Provisions
Pass-through business income is taxed
The 199A deduction wil expire. Hence pass-
Deduction for
according to ordinary individual income tax
through business income wil generally be
pass-through
rates. The TCJA created a deduction equal
taxed according to ordinary individual
to 20% of qualified business income. The
income tax rates without a deduction for
business
deduction is limited to the greater of 50%
qualified business income.
income—“199A
of W-2 wages, or 25% of W-2 wages plus

Deduction”
2.5% multiplied by depreciable property
(equipment and structures).
JCT budgetary cost
estimate of TCJA
Specified service trade or businesses
changes: -$415
(SSTBs)b generally may not claim the
billion (FY2018-
deduction except in specific circumstances.
FY2027).
The deduction limitation and SSTB
limitation do not apply if taxable income is

less than $191,950 (single) or $383,900
CBO budgetary cost
(married) in 2024. These limitations are
estimate if TCJA
phased in over a $50,000 (single) and
changes extended
$100,000 (married) range, and thus apply
permanently: -$548
ful y if a taxpayer’s income is at or above
billion (FY2024-
$214,950 (single) and $483,900 (married).
FY2033).

Section 11011 of P.L. 115-97

IRC Section 199A

Expires 12/31/2025
For taxpayers other than C corporations, a
Businesses wil generally be permitted to
Limitation on
deduction in the current year for excess
carry over a net operating loss (NOL) to
losses for
business losses is temporarily disallowed,
certain past and future years. Under the
originally through 2026 by the TCJA and
passive loss rules, individuals and certain
noncorporate
subsequently extended to 2028 by the
other taxpayers wil be limited in their ability
taxpayers
Inflation Reduction Act (P.L. 117-169, IRA).
to claim deductions and credits from passive
JCT budgetary cost
In addition, such losses are treated as a
trade and business activities, although unused
estimate of TCJA
NOL carryover to the fol owing year.
deductions and credits can generally be
carried forward to the next year. Similarly,
Congressional Research Service

11

Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provision
TCJA
Scheduled Expiration of TCJA
changes: +$150
An excess business loss is the amount that
certain farm losses may not be deducted in
billion (FY2018-
a taxpayer’s aggregate deductions
the current year, but can be carried forward
FY2027).
attributable to trades and businesses
to the next year.

exceed the sum of (1) aggregate gross

income or gain attributable to such
CBO budgetary cost
activities, and (2) $305,000 ($610,000 if
IRC Section 461(l)
estimate if TCJA
married filing jointly) in 2024. For

changes extended
partnerships and S corporations, this
permanently: +$137
provision is applied at the partner or
billion (FY2024-
shareholder level.
FY2033).

Section 11012 of P.L. 115-97
Section 13903 of P.L. 117-169
IRC Section 461(l)

Expires 12/31/2028
A taxpayer generally must capitalize the
Businesses wil generally capitalize the cost of
Expensing
cost of property used in a trade or business property used in a trade or business or held
JCT budgetary cost
or held for the production of income and
for the production of income and recover
estimate of TCJA
recover such cost over time through annual such cost over time through annual
changes: -$86 billion
deductions for depreciation or
deductions for depreciation or amortization
(FY2018-FY2027).
amortization.
without the use of bonus depreciation.

The TCJA temporarily allowed ful
expensing (i.e., 100% bonus depreciation)
CBO budgetary cost
through 2022, before phasing down ratably
estimate if TCJA
through the end of 2026. For long-
changes extended
production-period property, the
permanently: -$325
phasedown period begins after 2024.
billion (FY2024-
FY2033).

Section 13201 of P.L. 115-97
IRC Section 168(k)

Expires 12/31/2026
(Excluding long production property)
The uniform capitalization (UNICAP) rules
The exception for third parties (C) would no
Citrus plants
address the method for determining costs
longer apply. (The other two exceptions—
lost by casualty
that taxpayers are required to capitalize or
(A) and (B)—would stil apply.)
treat as inventory. They generally apply to
JCT budgetary cost

property produced in a trade or business
estimate of TCJA
or acquired for resale.
IRC Section 263A
changes: revenue loss

of less than
One exception is for edible citrus plants
$50 million (FY2018-
lost or damaged by reason of a casualty or
FY2027).
similar event. The exception may apply to
(A) the taxpayer’s cost of replanting such

citrus plants, and either (B) costs paid or
CBO budgetary cost
incurred by other persons if the taxpayer
estimate if TCJA
has more than a 50% equity interest in the
changes extended
citrus plants at all times during the year and
permanently: -$11
the other person owns any of the
million (FY2024-
remaining interest and materially
FY2033).
participates in the planting or similar

activities, or (C) temporarily through the
TCJA to third parties if (1) the taxpayer has
Congressional Research Service

12

Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provision
TCJA
Scheduled Expiration of TCJA
an equity interest of at least 50% in the
replanted citrus plants at all times during
the year and the other person owns any of
the remaining interest, or (2) the other
person acquired the taxpayer’s entire
equity interest in the land on which the
citrus plants were located and the
replanting is on such land.

Section 13207 of P.L. 115-97
IRC Section 263A(d)(2)(C)(ii)

Expires 12/22/2027
Other Provisions
Estate and gift taxes are levied at a rate of
The estate and gift tax exclusion amount wil
Estate and gift
40% on transfers after excluding a fixed
be reduced from $10 mil ion per decadent to
Tax
amount from taxation. For decedents who
$5 mil ion per decedent statutorily and then
die in 2024, the exclusion amount is
adjusted annually for inflation.
JCT budgetary cost
$13,610,000 per decedent ($10 mil ion per
estimate of TCJA

decedent statutorily adjusted annually for
changes: -$83.0
inflation).
IRC Sections 2001 and 2010
billion (FY2018-
FY2027).

Section 11061 of P.L. 115-97
IRC Section 2010(c)(3)(C)
CBO budgetary cost
estimate if TCJA

changes extended
Expires 12/31/2025
permanently: -$126.5
billion (FY2024-
FY2033).
Employers paying wages to employees on
No credit wil be available for employer-
Employer credit family and medical leave may be eligible for
provided paid family and medical leave.
for paid family
a tax credit. The credit amount is
calculated as a percentage of wages paid to
and medical
a qualifying employee while on family and
leave
medical leave. If the employers pay 50% of
JCT budgetary cost
wages normally paid while an employee is
estimate of TCJA
on family and medical leave, the credit is
changes: -$4.3 billion
12.5% of wages paid, proportional y
(FY2018-FY2027).
increasing to a maximum credit of 25% for
paid leave worth 100% of wages normally
Note that this does
paid. Employers may claim the credit for up
not reflect the cost
to 12 weeks of paid leave per employee.
of the subsequent
extensions of this
Leave required by state or local law does
provision by P.L.
not qualify for the credit. Leave provided in
116-94 and P.L.
excess of legally required minimums may
116-260.
qualify for the credit. For example, if an
employer provided a paid family and

medical leave benefit with 100% wage
CBO budgetary cost
replacement, while legally required to
estimate if TCJA
provide a 50% wage replacement benefit,
changes extended
the excess 50% may qualify for the credit.
permanently: -$3.6
However, many state or local laws
Congressional Research Service

13

link to page 17 Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Provision
TCJA
Scheduled Expiration of TCJA
billion (FY2024-
regarding paid family or medical leave
FY2033).
require a wage replacement rate above
50%, so benefits paid to employees in those

jurisdictions are likely not eligible for the

credit. As state and local governments
continue to adopt paid family and medical
leave policies, the pool of employers who
are potentially eligible for this credit may
be shrinking.
Eligible employers are those that allow
qualifying ful -time employees at least two
weeks of paid family and medical leave
(with leave time prorated for part-time
employees) separate from vacation,
personal, or sick leave. A qualifying
employee is one who has been employed
by the employer for at least one year, and
who, during the preceding year, had
compensation up to 60% of the
compensation threshold for highly
compensated employees.c

Under TJCA, this credit originally expired on
December 31, 2019. The Taxpayer Certainty
and Disaster Relief Act of 2019 (Division Q of
P.L. 116-94) extended the credit through
2020, while the Taxpayer Certainty and
Disaster Tax Relief Act of 2020 (Division EE of
P.L. 116-260) extended it through 2025.

Section 13403 of P.L. 115-97
Section 142 of Division Q of P.L. 116-94
Section 119 of Division EE of P.L. 116-260
IRC Section 45S

Expires 12/31/2025
Opportunity zones provide several tax
Investments in opportunity zones wil not be
Qualified
benefits to those who invest in these areas,
eligible for deferral, adjustments to basis, or
opportunity
including (1) a temporary deferral of capital
exclusions on gains.
gains taxation if gains are reinvested in a
zones
qualified opportunity fund; (2) an increase
JCT budgetary cost
in the investment basis if specific holding
estimate of TCJA
periods are met; and (3) a permanent
changes: -$1.6 billion
exclusion of the capital gains from income if
(FY2018-FY2027).
investments in a qualified opportunity fund

are held for at least 10 years (hence, these
capital gains are not subject to taxation).
CBO budgetary cost
No election for deferral of gain is allowed
estimate if TCJA
after December 31, 2026.
changes extended
permanently: -$67.3

billion
Section 13823 of P.L. 115-97

IRC Sections 1400Z-1 and 1400Z-2

Expires 12/31/2026
Congressional Research Service

14

Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Sources: CRS analysis of P.L. 115-97 and other laws as noted in the table. IRS Revenue Procedures 17-58 and
23-34.
Notes: This table provides a basic description of the tax provisions in P.L. 115-97. Any deviations from the
statutory text are not intended as legal interpretations of such text. The table includes primary citations to the
Internal Revenue Code (IRC) for each provision, but other IRC provisions and sources of law may be relevant.
Some temporary changes to the TCJA either expired as scheduled before 2025, were repealed, or were made
permanent and hence are not included in this table.
a. Forgiven debts are generally considered income and subject to the income tax. Under the TCJA, this
provision was modified so student loans discharged due to the death or permanent total disability of the
student did not count as gross income through 12/31/2025. Section 9675 of the American Rescue Plan Act
(ARPA; P.L. 117-2) modified the TCJA change further so that it applied to virtually any discharged student
loan. At the end of 2025, when the ARPA change expires, forgiven student loan debt (including debt
forgiven due to death or permanent and total disability) wil generally be includible in gross income and
hence subject to taxation.
b. An SSTB is a trade or business involving the performance of services in the fields of health, law, accounting,
actuarial science, performing arts, consulting, athletics, financial services, investing and investment
management, trading or dealing in certain assets, or any trade or business where the principal asset is the
reputation or skil of one or more of its employees or owners.
c. For example, according to the most recent information from the IRS, for 2022 the applicable amount of
compensation was $135,000. Hence to be a qualifying employee in 2023, the employee could be paid up to
$81,000 in 2022.
Congressional Research Service

15

Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Delayed Onset Tax Provisions in the TCJA
In addition to the expiring provisions discussed above, the TCJA contained several provisions which have delayed
implementation dates. For example, for tax years beginning prior to January 1, 2022, businesses could ful y deduct
research and experimentation expenses in the year the expenses were incurred. For tax years beginning after
December 31, 2021, businesses are required under the TCJA to amortize research and experimentation (R&E)
expenses over five years. At the time of consideration, JCT estimated that this provision would generate
additional federal revenues of $120 bil ion (FY2022 through FY2027). Continuing to allow R&E expensing, instead
of requiring that such expenditures be amortized, would reduce federal tax revenues by an estimated $153 bil ion
(FY2023-FY2032) according to the Tax Policy Center (TPC).4
The TCJA also enacted several business tax provisions—base erosion minimum tax (BEAT), foreign-derived
intangible income (FDII), and global intangible low-taxed income (GILTI)—with formulas that wil be modified
starting in tax years beginning after December 31, 2025, and, for the modified limitation on the deduction for
business interest, starting in tax years beginning after December 31, 2021. The effects of these formula changes
were not separately estimated at the time of consideration, though all of the modifications would generate
additional tax revenue. Delaying the formula changes would reduce federal revenue by $14 bil ion (FY2024-
FY2033) for BEAT and a combined $111 bil ion (FY2024-FY2033) for FDII and GILTI.5

Author Information

Margot L. Crandall-Hollick
Brendan McDermott
Specialist in Public Finance
Analyst in Public Finance

Donald J. Marples

Specialist in Public Finance

4 For more information, see Tax Policy Center, “Model Estimates, T22-0163R - Modify Certain Business Provisions,
Make CTC Fully Refundable, and Extend Expansion of EITC for Workers without Qualifying Children, Impact on Tax
Revenue, 2023-42 Fiscal Years,” https://www.taxpolicycenter.org/model-estimates/modify-business-provisions-and-
child-tax-credit-and-earned-income-tax-credit-15.
5 Congressional Budget Office, Budgetary Outcomes Under Alternative Assumptions About Spending and Revenues,
Supplemental Data, May 2023, https://www.cbo.gov/publication/59154#data.
Congressional Research Service

16

Reference Table: Expiring Provisions in the “Tax Cuts and Jobs Act” (TCJA, P.L. 115-97)

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.

Congressional Research Service
R47846 · VERSION 1 · NEW
17

Download PDF

Download EPUB

Revision History

Nov. 21, 2023

HTML · PDF

Metadata

Topic areas

Economic Policy

Report Type: CRS Report

Source: CRSReports.Congress.gov

Raw Metadata: JSON