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Working Families Tax Cut

Overview

The Working Families Tax Cut is now law! It lowers taxes for families, small businesses, farmers & ranchers, industry and blue collar workers so people get to keep more of what they earn. The goal is simple: reward hard work, make life a little more affordable, and give local businesses the chance to grow.

What the Law Delivers

Here are the biggest changes Texans will notice:

  • Lower Taxes on Work — Tips and overtime pay are no longer taxed.

  • Bigger Standard Deduction — Families can keep thousands more dollars tax-free.

  • Stronger Child Tax Credit — Parents get more money back for each child.

  • Permanent Small Business Relief — Local shops and family-owned companies get steady tax breaks.

  • Rural Investment — New incentives push jobs and dollars into small towns and farming communities.

Families

This law helps families by:

  • No tax on tips and overtime. Hard work and extra hours now mean more money in your pocket.

  • Child Tax Credit stays doubled. Parents keep getting $2,000 (now $2,500 with inflation boost) per child.

  • Relief for seniors. Social Security income gets new protections from taxes.

  • Adoption support. Bigger credits to help families afford adoption.

  • Childcare help. Businesses get new tax breaks if they cover childcare, which encourages more of them to help.

Small Business

Small businesses are the backbone of East Texas. This law:

  • Makes permanent the 20% small business tax cut (199A deduction). That means lasting relief.

  • Brings back full expensing. Companies can write off new equipment, research, and expansions right away.

  • Raises the limit for deductions. The cap on business purchases doubled, giving more room to grow.

  • Cuts paperwork. Resets the IRS reporting rule for online payments, making life easier for local businesses.

Rural Community

For farmers, ranchers, and small towns, the law delivers:

  • Family farms protected. The “Death Tax” exemption stays high so land and equipment can pass to the next generation.

  • Opportunity Zones expanded. Billions in private investment are now directed to rural and distressed areas.

  • Full expensing for agriculture. Farmers can deduct the cost of new tractors, barns, or irrigation systems in the first year.

  • Fairer crop programs. Updates to base acres, price protections, and crop insurance help keep farmers secure.

Resources

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