KPMG report: Exempt organization provisions in “One Big Beautiful Bill”

The U.S. House of Representatives on May 22, 2025, passed H.R. 1, the budget reconciliation bill known as the “One Big Beautiful Bill.” The Joint Committee on Taxation (JCT) provided estimated revenue effects of the provisions of H.R. 1 in JCX-26-25R. The Senate Finance Committee on June 16, 2025, then released its version of the tax subtitle for potential inclusion in the bill. The JCT provided estimated revenue effects relative to a current policy baseline of the provisions of the Senate version of the bill in JCX-29-25. The announced goal is for the Senate to pass a budget bill before adjourning for its Independence Day recess on June 27, 2025. There may well be further changes to the Finance tax subtitle before—and even during—a Senate vote.

Both the House and Senate versions of the tax subtitle would make permanent most of the expiring individual tax provisions of the Tax Cuts and Jobs Act (TCJA). Both versions also would temporarily provide for tax benefits promised by the president for tip income, overtime pay, and auto loan interest, and introduce a host of revenue-raising provisions. However, the Senate bill differs from the House bill in several ways.

Read a June 2025 report prepared by KPMG LLP that provides analysis and observations regarding the provisions in the bill related to tax-exempt organizations.

For more information, contact your usual KPMG tax professional or one of the following Washington National Tax professionals:

Ruth Madrigal | ruthmadrigal@kpmg.com

Preston Quesenberry | pquesenberry@kpmg.com