Senate Finance Committee Chair Mike Crapo announced that three major business tax provisions will be made permanent in the GOP’s megabill, but at a cost. The pledge to restore larger tax deductions for research-and-development costs, business equipment purchases, and interest on debt is a priority for Crapo and his panel, which considers them key drivers of economic growth.
However, making these breaks permanent will require tradeoffs, including scaling back the House-brokered deal on the state-and-local-tax deduction. GOP Sens. Steve Daines and John Hoeven confirmed Crapo’s remarks, stating that permanency is a Senate priority over President Donald Trump’s preference for short-term extensions.
To offset the additional costs, Crapo plans to cap the SALT deduction at a lower level than the $40,000 deal Speaker Mike Johnson cut with his own members. Blue-state GOP lawmakers are already warning about this move, which Senate Majority Leader John Thune first outlined to POLITICO.
Crapo’s comments signal significant changes to the bill, particularly in politically sensitive areas. House Republicans are urging Thune to make as few changes as possible, but Crapo’s presentation suggests that the Senate will alter some provisions despite their concerns.
Leadership is expected to meet with Trump at the White House on Thursday to walk him through the tax plan. Crapo will also brief the Senate GOP in greater depth early next week.
Source: https://www.politico.com/live-updates/2025/06/11/congress/thune-and-crapo-to-huddle-with-trump-00400782