Submit RFP

      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.”  On July 1, 2025, the Senate passed its version of H.R. 1, which made various amendments to the bill, including changes to the tax subtitle that was included in the House bill.  (For prior coverage, see GMS Flash Alert 2025-120, June 20, 2025.)  On July 3, 2025, the House passed the Senate bill without amendment, and the bill was signed into law by President Trump on July 4, 2025.1

      Click here to read a report authored by KPMG LLP that details the enacted provisions with the greatest potential to impact global mobility programs.  The descriptions of the provisions under the “Senate bill” subheadings reflect the enacted provisions.  The report is one of a series of reports that KPMG LLP has prepared on the bill, which can all be found here.  

      WHY THIS MATTERS

      The legislation permanently extends and modifies many of the individual income tax provisions of the 2017 Tax Cuts and Jobs Act (TCJA) set to expire at the end of the year.  Global mobility programs will need to work with their tax service providers to assess the impact these updates will have on overall program cost and may need to update cost projections to account for these tax changes.

      Provisions of Interest to Global Mobility Programs  

      As noted, the legislation generally makes permanent (with modifications) the expiring TCJA provisions, such as lower regular income tax rate schedules for individuals, the increased standard deduction, child tax credit, and Alternative Minimum Tax exemption and phase-out thresholds.  The legislation also permanently suspends the standard personal exemption, moving expense deduction, and exclusion for qualified moving expense reimbursement. 

      The legislation increases the state and local tax deduction limitation, but also adds a new limitation on the tax benefit of itemized deductions.

      KPMG INSIGHTS

      See the KPMG report for a complete breakdown of the legislation and considerations for global mobility programs.

      KPMG LLP will continue to provide updates as the legislation’s provisions take effect and any regulations are issued to implement and/or provide additional guidance on the provisions.

      FOOTNOTE:

      1  For the text of the legislation passed by Congress, see https://www.congress.gov/119/bills/hr1/BILLS-119hr1eas.pdf.

      Contacts

      Martha Klasing
      Martha Klasing

      Partner, Washington National Tax – Global Mobility Services

      KPMG in the U.S.

      Rob Fagan
      Rob Fagan

      Senior Manager, Washington National Tax – Global Mobility Services

      KPMG in the U.S.

      John T. Seery
      John Seery

      Managing Director, Washington National Tax – Global Mobility Services

      KPMG in the U.S.

      More Information

      pdf

      Download PDF

      Download and save the PDF version of this GMS Flash Alert.

      Download

      GMS Flash Alert reports on recent global mobility-themed developments from around the world to help you better understand what has changed and what that means for you.

      Subscribe now

      GMS Flash Alert

      Shedding light on evolving policies affecting international assignees and employers, helping make sense of it all.

      Visit GMS Flash Alert home
      alt
      Disclaimer

      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.

      The information contained in this newsletter was submitted by the KPMG International member firm in the United States.

      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.

      © 2025 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.