Sponsors (2)
The bill expands and clarifies who can claim benefits under section 23(d), giving tax relief and reduced compliance uncertainty to eligible organizations while raising fiscal costs and imposing administrative burdens to implement the change.
Taxpayers in newly included categories will be eligible for an expanded set of entities under section 23(d), enabling them to claim larger or newly available tax benefits.
Taxpayers and financial institutions whose organizations now clearly fall within the statute will have clearer eligibility rules, reducing uncertainty and simplifying compliance and planning.
Broadening eligibility is likely to reduce federal revenues, which could increase the deficit or require offsetting budgetary adjustments.
Taxpayers, financial institutions, and the IRS will incur administrative costs to update systems, guidance, and forms to reflect the changed eligibility rules.
Based on analysis of 2 sections of legislative text.
Introduced February 26, 2025 by Amy Klobuchar · Last progress February 26, 2025
Amends the Internal Revenue Code to expand the list of entities referenced in paragraph (3) of section 23(d), adding additional categories to the entities named in the relevant subparagraphs so that certain tax rules apply more broadly; the change applies to taxable years beginning after enactment. The act also establishes an official short title but does not create new spending, definitions, or programmatic requirements.