On May 22, 2025, the U.S. House of Representatives passed H.R. 1, the budget reconciliation bill known as the “One Big Beautiful Bill Act.”1  The largely party-line vote for passage was 215-214.  The bill includes, with some amendments, the tax title approved by the Ways and Means Committee last week.2 

Prior to passage by the full House, the Rules Committee made two sets of changes to the tax title approved by the Ways and Means Committee.  The Rules Committee amendments include changes that have the potential to impact global mobility programs, such as changes to the the deduction for certain state and local taxes (“SALT deduction”).

The report is one of a series of reports that KPMG LLP will soon be updating with analysis and observations on the bill, which are available here on our dedicated website.

WHY THIS MATTERS

The bill’s passage in the House represents a significant milestone in the legislative process, as the bill will now be transmitted to the Senate.  While it is expected that the Senate will modify some of the tax provisions contained in the House-approved bill, the bill still provides valuable insight into the tax provisions that may eventually be enacted into law.  As a result, it provides global mobility programs with an opportunity to assess and model the impact such provisions may have on program costs should such provisions eventually become law.    

Rules Committee Changes

As mentioned above, the amendments made by the Rules Committee include changes that have the potential to impact global mobility programs. These include:

  • Increasing the SALT deduction limitation from $30,000 ($15,000 for married filing separate filers) to $40,000 ($20,000 for married filing separate filers) and increasing the level of modified adjusted gross income for which the deduction starts to phase out from $400,000 ($200,000 for married filing separate filers) to $500,000 ($250,000 for married filing separate filers).
  • Changes to the Alternative Minimum Tax inflation adjustment calculation that may result in more taxpayers being subject to the AMT than otherwise would have occurred under the version of the bill approved by the Ways and Means Committee.
  • Changes to the limitation on the tax benefit of itemized deductions for high-income earners.
  • Reducing the excise tax on remittance transfers from 5 percent to 3.5 percent.

The above changes will soon be incorporated into the report authored by KPMG LLP that details the provisions of the bill that would have the greatest impact on global mobility programs if enacted into law. 

KPMG INSIGHTS

The bill will be transmitted to the Senate for consideration to begin after Congress’ Memorial Day recess.  The Senate is expected to make changes to the House-approved bill, possibly including the tax provisions.  KPMG LLP will continue to provide updates as the bill works its way through the process in Congress. 

FOOTNOTES:

1  See on the www.congress.gov website: "H.R.1 - One Big Beautiful Bill Act."

2  See “United States – KPMG Report: Global Mobility Tax Provisions in ‘One Big Beautiful’ Bill” in GMS Flash Alert 2025-097 (May 16, 2025).  

RELATED RESOURCE:

For text of the bill, see “Legislative update: House passes “One Big Beautiful Bill Act”” in TaxNewsFlash (May 22, 2025), a publication of KPMG LLP (U.S.).

Contacts

Martha Klasing
Martha Klasing

Partner, Washington National Tax – Global Mobility Services

KPMG in the U.S.

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The above information is not intended to be “written advice concerning one or more federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.

GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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