Rep. Kristi Noem today led the U.S. House of Representatives in passing Tax Reform 2.0. The legislative package makes permanent the tax relief families and small businesses received through the Tax Cuts and Jobs Act. The landmark package also includes provisions to simplify retirement savings, allow parents to start education savings accounts for their unborn children, and promote innovation for small startup businesses.

“The historic tax cuts we passed last year have been life-changing for the people of South Dakota. I hear it everywhere I travel in the state,” said Noem. “The tax cuts help our small businesses stay in businesses and put money in families’ pockets. Tax Reform 2.0 goes another step forward. Through this bill, we incentivize innovation and give hardworking Americans more opportunities to save.”

WATCH: Noem Speaks in Support of Tax Reform 2.0 on House Floor

Last year, Noem served as one of the only farmers or ranchers on the final tax cuts negotiating team, making her a critical advocate for South Dakota’s number one industry. The legislation gave producers access to enhanced expensing tools, immediate deductibility, and like-kind exchanges. Additionally, Noem championed the Child Tax Credit, which doubled to $2,000/child under the tax cuts package, and saved the Child Care Credit from repeal.

Highlights of Tax Reform 2.0

  • Makes the following provisions from 2017’s historic tax cut permanent:
    • Lower tax rates
    • Doubling of the Child Tax Credit from $1,000/child to $2,000/child
    • Doubling of exemption levels for the Death Tax
  • Creates a new Universal Savings Account to offer a fully flexible savings tool for families
  • Expands 529 Education Savings Accounts so families can use the money to pay for apprenticeship fees, homeschooling, or student debt
  • Offers New Baby Savings by allowing families to access their own retirement accounts penalty-free for expenses when welcoming a new child through birth or adoption
  • Allows small businesses to join together to create a 401(k) plan more affordably
  • Allows new businesses to write off more of their initial start-up costs

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