More Questions Than Answers: 2025 Pending Tax Legislation

By Contributor, Greater Green Bay Community Foundation
June 26, 2025

The so-called “Big Beautiful Bill” (H.R. 1) that passed the House of Representatives by a 215-214 vote on May 22, 2025, and is now being debated in the Senate, where significant changes are expected before final passage. And that is the primary takeaway here: Significant changes are expected. This makes it impossible to predict right now how your clients might be impacted by tax law changes.

Still, it’s important to be aware of key components of the bill that could impact estate and financial planning. Three key provisions rise to the top as advisors consider how their charitable clients might be affected:

No sunset of estate tax exemption

The bill makes permanent the expiring 2017 tax cuts under the Tax Cuts and Jobs Act (TCJA). This means that the much-anticipated sunset of the increased estate tax exemption might not happen at the end of this year after all. If the estate tax exemption remains high, a smaller segment of your clients will be motivated to use charitable giving as a way to avoid estate tax. Still, though, because people rarely give to charity solely for tax avoidance purposes, your clients remain very interested in discussing charitable giving and incorporating philanthropy into their estate and financial plans.

Standard deduction stays high

Proposals in the bill would make permanent the higher standard deduction levels from the TCJA, and even add an additional temporary increase through 2028. The upshot here is that few taxpayers itemize their deductions, reducing the number of people eligible to claim a charitable deduction. The still-high standard deduction likely could signal continuation of the decline in charitable giving following the 2017 tax cuts. On the flip side, the bill introduces a modest “above-the-line” charitable deduction for nonitemizers—$150 for individuals and $300 for joint filers.

Preserved taxes on private foundations

As of the date of this writing, the Senate version of the bill preserves the existing excise tax structure for private foundations, omitting the tiered increase proposed in the House version. This development leaves the current 1.39% tax rate unchanged, protecting philanthropic resources and preserving important incentives for giving.

So what’s next? The Senate is expected to vote soon but some anticipate the process will likely extend into July or August as both chambers reconcile differences before sending the bill to President Trump for signature.

In the meantime, our team is here to support you and your clients. We welcome the opportunity to explore charitable giving strategies that help your clients make a meaningful impact — supporting the causes they care about and addressing critical needs in our community, no matter how the tax landscape evolves.

Have questions? Call us at 920-432-0800 or email a member of our Donor Relations team.