Overview

• The Senate bill would cap Medicaid provider taxes at 3.5 percent by 2031, down from 6 percent, prompting senators like Josh Hawley to warn that rural hospitals may face closures.
• Clean-energy incentives from the 2022 Inflation Reduction Act would be phased out on a staggered timeline, ending wind and solar credits by 2027 and lithium processing breaks by 2034.
• The SALT deduction limit stays at $10,000 in the Senate draft, clashing with the House’s $40,400 proposal and drawing opposition from moderate Republicans.
• Senate leaders have made permanent key business incentives—100 percent expensing for R&D and new capital investment—while capping the ’no tax on tips’ deduction at $25,000 through 2028.
• Majority Leader John Thune aims to release a unified text early next week as President Trump presses senators to soften Medicaid cuts and protect rural hospitals.