Car loan breaks, silencer fees axed: Some lesser-known items from Trump's 'Big Beautiful Bill'

Time of India

6 hours ago

Big beautiful bill passed (AP)
As US President Donald Trump prepares to sign his much-touted 'big beautiful bill' into law on Friday, following its approval by the congress after a week of intense political drama and marathon debate on Capitol Hill, much of the spotlight remains on big-ticket agendas items, such as tax cuts, increased funding for border security and food assistance program, and major reductions in federal Medicaid spending.
However, the sweeping tax and spending bill also includes a host of lesser-known provisions.
Tax cuts for whaling captains
As the focus remains on major tax cuts, another tax relief has been extended to the whalers in Alaska. After Senator Tillis decided to vote against the bill, Alaska's Republican senator Lisa Murkowski used her leverage as the Senate's deciding vote to draw concessions in the final bill for her home state. One of them was a fivefold increase in the tax deduction for whaling-related expenses, rising from $10,000 to $50,000.
Loan interest relief for car buyers
Between 2025 and 2028, Americans purchasing US-made vehicles will be eligible to deduct up to $10,000 in interest paid on their auto loans. While claiming the full deduction would typically require buying a vehicle priced in the six-figure range, most buyers could still save several hundred dollars per year for buying average cars, trucks, and SUVs.
Meanwhile, people planning to buy electric vehicles will lose a tax credit of up to $7,500 at the end of September.
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The credit, which was introduced during former President Joe Biden's term, was originally meant to stay in place until 2032.
Silencer and SBR charges dropped
The bill also does away with the $200 fee gun owners must pay when buying silencers and short-barrel rifles, and also lifts the associated registration and ownership rules.
These items will no longer fall under the 1934 National Firearms Act, a law passed during the prohibition era to combat gang violence.
However, the act will still apply to machine guns and explosive devices.
Space shuttle Discovery to be moved
The space shuttle Discovery, which has been on display at the Smithsonian National Air and Space Museum's annexe in Northern Virginia since its retirement in 2011, will be moved to Houston.
The bill allocates $85 million to cover the cost of relocating and housing the shuttle at the Johnson Space Center. This move follows efforts by Texas Republican senators John Cornyn and Ted Cruz, who emphasized Houston's key role in the space shuttle program and pushed for the shuttle's transfer.
New fees for space missions
The new bill makes the provision where the commercial spaceflight companies, including Elon Musk's SpaceX, will be required to pay fees for their launches and reentries. These fees will be gradually introduced over eight years to help the Federal Aviation Administration's Office of Commercial Space Transportation manage the industry's fast growth.
Starting at 25 cents per pound with a maximum of $30,000 per launch, the fees will increase to $1.50 per pound, capped at $200,000 per launch by 2033.
After that, the fees will rise based on the consumer price index.
Kennedy Center overhaul
The bill also allocates $257 million to support President Trump's frequently mentioned plans to renovate the Kennedy Center for the Performing Arts. This funding comes despite the Trump administration's earlier decision to cancel grants for arts and humanities programs across the country.
Trump has reshaped the Kennedy Center's board by appointing political allies.
Last month, he attended the center's opening night of 'Les Misérables,' where he received a mixed reaction from the audience, including both cheers and boos.
New tax rules hit gamblers
The poker industry, including professional players, as well as those playing online and in casinos, could face serious challenges due to a new provision that reduces gambling-related tax deductions.
Currently, gamblers can deduct their losses fully before paying taxes on their winnings. Under the new bill, however, they will only be able to deduct 90% of their losses. For example, if you win $100,000 but lose $80,000, you would normally owe taxes on $20,000. With the new rule, you would owe taxes on $28,000.