The 2025 tax bill did not target low-income families. TPC’s Ben Page and Renu Zaretsky explain that Treasury’s 2025 filing-season analysis of selected tax breaks in the One Big Beautiful Bill Act (OBBBA) shows who claimed certain 2025 provisions, but not who benefits most from the law overall. TPC estimates that in 2026 the top 20 percent of households receive almost 60 percent of the tax cuts. The bottom quintile gets an average tax cut of about $150, while the top quintile gets an average tax cut of over $12,000.
North Carolina opts into federal scholarship tax break. North Carolina lawmakers overrode Gov. Josh Stein’s (D-NC) veto and conformed state law to a new federal education tax credit. The federal provision, enacted as part of OBBBA, provides a nonrefundable dollar-for-dollar tax credit of up to $1,700 for donations to scholarship-granting organizations beginning in tax year 2027. House Bill 87 directs the North Carolina State Educational Assistance Authority to certify and list qualifying organizations. Democratic critics say the state is opting into the program before Treasury has issued rules and warn it could reduce support for public education. Republican supporters say the state should move ahead and can adjust once federal guidance is available.
Indiana extends gas tax suspension. Gov. Mike Braun (R-IN) extended Indiana’s gasoline tax suspension for another 30 days, continuing temporary relief from 62.5 cents per gallon in state taxes. Indiana’s average gas price was $3.59 per gallon Wednesday, the lowest statewide average in the country and below the national average of $4.26, according to AAA. But the suspension is also costing the state more than $100 million a month in road funding, raising concerns for cities, towns, counties, and the state Department of Transportation. Braun says he supports using state reserves to backfill lost revenue, while local officials say a short-term suspension is manageable but a longer one could affect road projects.
IRS and TPC conference registration is open. The IRS and TPC invite researchers, practitioners, and policymakers to attend the 16th Annual IRS/TPC Joint Research Conference on Tax Administration. The conference will feature researchers from the IRS, other government agencies, academia, and private organizations discussing new research on how to make tax administration more effective. The event is the only annual conference focused specifically on tax administration research—register here for they hybrid event on June 25.
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