Monthly LRA Update: May 2025

TAX DEVELOPMENTS

Tax Reform Update

On May 22 the US House of Representatives passed the One Big Beautiful Bill Act (H.R. 1) by a single vote margin. Upon review of the legislation, we have not observed any provisions that are directly impactful to the BOLI/COLI industry. Advocacy groups including the ACLI and Finseca have expressed support for the legislation.

The legislation includes several employee-benefit related provisions. A few notable items include

• Health Savings Accounts: Various provisions that expand the utilization of these accounts;
• Student Loan Reimbursements: Would allow employers to deduct student loan reimbursement payments (i.e., make the TCJA provision permanent); and
• Employer-Provided Child Care Credit: Would increase an employer-provided child care tax credit and index the credit for inflation.

The bill will now be taken up by the Senate. It has been speculated that significant changes will be needed to get the necessary votes for the bill to pass in the Senate. Senate Republican leadership has maintained a desire to pass the legislation by the Fourth of July.

We will continue to monitor for any material changes to the legislation.