Announcement

Legislative Update: Key Wins for CFP® Professionals in House Reconciliation Package

May 23, 2025

By one vote, the House of Representatives passed its version of the budget reconciliation package early on May 22, sending the legislation to the Senate. CFP Board has been closely engaged in this process, as several provisions under consideration directly affect the public, the nonprofit sector and CFP® professionals.

Key Developments

Support for Professional Certification
With many CFP® professionals voicing their support, the Freedom to Invest in Tomorrow’s Workforce Act (H.R. 1151/S. 756) was included in the House package. This important measure would allow 529 education savings accounts to cover fees and expenses related to obtaining or maintaining recognized post-secondary credentials — including the CERTIFIED FINANCIAL PLANNER® certification. This is a major step forward in supporting continued professional development.
Pass-Through Deduction Win
Thanks in part to our advocacy, the package includes a permanent extension and increase of the Section 199A pass-through deduction for qualified business income (QBI), from 20% to 23%, benefiting many CFP® professionals operating as pass-through entities. Further, the specified services trades or business (SSTB) category, which places a limitation on certain professions including financial advisors, will see a restructured income phaseout allowing individuals in the category to take more of the deduction. As it currently stands, there is a steep cutoff at a certain income level.
Casualty and Theft Loss Deduction
CFP Board recently endorsed the bipartisan Tax Relief for Victims of Crimes, Scams and Disasters Act (H.R. 3469/S. 1773), which was introduced in both chambers last week. While it aims to restore the casualty and theft loss deduction that was generally eliminated by the Tax Cuts and Jobs Act of 2017, the current reconciliation package maintains limitations on this deduction — an issue we will continue to monitor.

What’s Next

During this process, CFP Board submitted a formal letter to both the House Ways and Means and Senate Finance Committees, expressing appreciation for certain provisions and concerns about others. Following a nearly 24-hour long markup by the House Rules Committee, the full package — formally named the One Big Beautiful Bill Act (H.R. 1) — passed the House on the morning of May 22 after overnight debate.

In addition to the provisions noted above, the comprehensive legislative package included the following relevant items (and more in its 1,000 plus pages):

A permanent extension of the individual tax cuts enacted under the 2017 Tax Cuts and Jobs Act (TCJA), which were set to expire in 2025;
A temporary boost to the standard deduction by $1,000 for single filers and $2,000 for married couples;
A $4,000 increase to the standard deduction for seniors from 2025 through 2028;
An increase to the state and local income tax deduction cap to $40,000;
Creation of “Trump” savings accounts for kids, including a pilot program that prefunds the accounts for children born between 2024 and 2028 with $1,000
An enhanced child tax credit of $2,500 through 2028, when it reverts to $2,000;
Certain business tax breaks;
Higher taxes for universities and foundations;
A new temporary deduction for interest on car loans;
The elimination of the IRS Direct File program;
Exemptions for tips and overtime pay;
Changes to student loan repayment programs, replacing existing student loan forgiveness with more stringent options; and
Introduction of a 5% tax on money sent abroad.

The legislation now heads to the Senate, where additional changes are expected. Republicans are aiming to have the legislation on President Trump’s desk by July 4. CFP Board’s Public Policy team remains actively engaged, advocating on behalf of the public and CFP® professionals and monitoring developments in real time.

CFP Board continues to educate members of Congress about, and advocate for, a tax incentive for financial advice, including financial planning. The initiative is picking up momentum as House Ways and Means Chair Jason Smith (R-MO) considers an additional tax package in a bipartisan fashion before the end of the year.