The bill could have major implications for defense, energy and industrial R&D.
The Republicans of the Chamber advance tax lounge for private R&D, major reductions in clean energy programs and higher taxes on college grants in the context of their budgetary reconciliation bill for the year 2025. An increase in major expenses for defense is also included in the bill, as well as plans to restart the federal auction of the federal bands of spectrum. electromagnetic.
The house passed the “A great nice bill” Early Thursday in a 215-214 vote after a 42-page pages Manager amendment helped win several republican retained. Below reconciliation process, The bill will now carry out in the Senate where it could be adopted with a simple majority vote, bypassing the need for democratic support. The Senate Republicans should produce their own version of the legislation.
Any change of budget in the bill will be distinct from the annual discretionary budget process.
Tax changes
The House bill Reintroduces the tax rules allowing companies to fully deduce the costs of interior research during the year they occurred, a decision that has been approved by many business And the universities that combine with them. This provision would overthrow a rule introduced into the tax on tax reductions and 2017 jobs which obliges companies to disseminate the deduction of R&D costs over five years. (This rule entered into force in 2022.)
The bill would also modify the current endowment tax of 1.4% on networking networks of private colleges and universities to introduce a rate of rate at several levels, with a highest rate of 21% for institutions with allocations greater than $ 2 million per student. In addition, the bill would eliminate several tax reductions for non -profit organizations, in particular tax exemption for not funded research income. Higher education defense groups such as the association of American universities have opposite These changes.
Increase in military spending
The bill would provide an increase of $ 150 billion to defense expenses, including $ 24.7 billion for the construction of the “Golden Dome” defense shield that President Trump propose Back in January. To support this business, the bill contains $ 18.8 billion for “new generation anti -missile defense technologies”, including $ 7.2 billion for the development and purchase of space -based military sensors, $ 5.6 billion to develop spatial and phase interception capacities, and 250 million dollars for the development of directed energy capacity.
Support for innovation and improvement of commercial technologies for military use is mentioned several times throughout the bill. As part of a section on the improvement of DOD resources to extend low -cost weapons in production, the bill includes $ 2 billion for the expansion of the defense innovation unit, an increase of $ 1 billion for “programs to accelerate the purchase and implementation of innovative technologies”, 250 million dollars for defense Advanced Research Agency Quantum comparative analysis initiative and $ 120 million for the development of small modular nuclear reactors for military use.
The bill also includes $ 3.2 billion for the National Nuclear Security Administration, including 1 billion dollars to accelerate the construction of facilities, $ 540 million for delayed maintenance, $ 200 million is intended for conceptual studies of new nuclear weapons and 100 million dollars consist in accelerating the domestic enrichment of uranium.
Large cuts to clean the energy
The bill would restrict or considerably eliminate many of the Clean energy incentives Presented by President Joe Biden within the framework of the law on the reduction of inflation, including the tax credits on clean energy, advanced manufacturing tax credits, subsidies of environmental justice blocks and the greenhouse gas reduction fund. The multiple offices of the Ministry of Energy would see non -obliged funding canceled if the bill is adopted, in particular the loan programs office, the energy efficiency and renewable energies office, and the Policy Office, among others.
Authorize spectrum auctions
The bill would restore the auction at the auction of the Federal Commission Commission, with the hope of raising 88 billion dollars By 2034 thanks to sales of 600 megahertz from Specter. Currently, funds would be used to compensate for the costs of other provisions of the legislation. Democrats’ suggestions to spend funds on specific federal programs were elected During changes to the committee. Senator Maria Cantwell (D-WA) has in the past propose Use auction funds to support scientific programs authorized by chips and science act, but this option no longer seems to be on the table.