Budget reconciliation bill with pro-community bank policies signed into law

President Donald Trump signed into law the One Big Beautiful Bill Act budget reconciliation package after the House of Representatives passed it on a 218-214 vote.

ICBA Applauds Congress: In a national news release, ICBA applauded Congress for including pro-community bank tax policies in the legislation. “We appreciate the many positive provisions of the bill that will promote and sustain economic growth in the local communities that community banks serve,” ICBA President and CEO Rebeca Romero Rainey said.

What It Means for Community Banks: ICBA-advocated provisions of the bill include:

• An ACRE Act policy to make 25% of interest income on agriculture and ranch real estate loans exempt from federal taxation, which will provide interest rate relief for U.S. farmers and ranchers.

• Making permanent the Section 199A deduction to support Subchapter S community banks and other pass-through businesses.

• Making permanent lower individual rates, a higher estate tax exemption, and a higher alternative minimum tax exemption to promote economic growth.

ICBA View: Enacting tax policies that support market growth and competition while helping to level the playing field is a key priority of ICBA’s “Repair, Reform, and Thrive” plan and open letter to the 119th Congress.

Ongoing Advocacy: ICBA will continue working with policymakers to expand on the ACRE Act interest rate relief for farmers and ranchers in future legislation. ICBA will also work with the agencies to secure the most favorable interpretation of the act’s provisions.