Tax Tips

The Working Families Tax Cuts Act, signed into law July 2025, is a major win for hardworking families, farmers, energy producers, and every North Dakotan who’s ready for a stronger, safer, and more affordable America. Have questions about what the tax cuts mean for you and your family? Click below for frequently asked questions about each policy:

The Working Families Tax Cuts Act reflects five key priorities; it’s Pro-Family, Pro-Business, Pro-American Energy and Agriculture, Pro-Border Security, and Pro-Common sense. Here’s a closer look: 

Pro-Family: 

The OBBB makes permanent the 2017 Tax Cuts and Jobs Act—preventing a $1,600 tax hike for the average North Dakota family of four and delivering meaningful relief to working parents and seniors. Specifically, the bill: 

  • Drops the tax rate on the lowest three brackets and keeps rates on all of the higher tax brackets the same.  

  • Increases the Child Tax Credit to $2,200 per child. 

  • Provides a new $6,000 deduction on Social Security benefits for most seniors, meaning 88% of seniors will not pay taxes on their Social Security benefits. 

  • Creates savings accounts for newborns. 

  • Enhances the Adoption Tax Credit and expands 529 education savings plans. 

Pro-Business and Worker: 

This bill puts American workers and small businesses first by eliminating burdens and rewarding productivity by: 

  • Eliminating taxes on tips and overtime. 

  • Allowing 100% immediate expensing for equipment, R&D, capital expenses, and new manufacturing facilities. 

  • Reducing paperwork and reporting headaches for entrepreneurs and gig workers. 

  • Offering permanent tax relief for employer student loan contributions. 

  • Making interest on loans for American-made cars tax-deductible. 

Pro-American Energy and Agriculture: 

North Dakota’s economy is built on energy and agriculture. This bill provides the support both sectors deserve by: 

  • Making the Section 199A pass-through deduction permanent. 

  • Boosting crop reference prices by up to 20 percent and improving crop insurance.  

  • Enhancing the 45Q tax credit for carbon capture for enhanced oil recovery. 

  • Repealing taxpayer subsidies for wind and solar after30 years. 

  • Restarting oil, gas and coal leasing. 

  • Investing $1 billion in western water projects like the Eastern North Dakota Alternate Water Supply Project (ENDAWS). 

  • Strengthening disaster assistance and repealing Green New Deal mandates. 

Pro-Border and National Security: 

This bill makes the largest investment in border security in over a generation—more than $175 billion to: 

  • Complete construction of the southern border wall. 

  • Hire and train immigration and border patrol agents.  

  • Expand detention capacity. 

  • Deport violent criminals and combat drug and human trafficking. 

The OBBB also enhances our national defense, including funding for critical missions in North Dakota: 

  • $2.5 billion for the new Sentinel ICBM. 

  • $500 million to sustain the Minuteman III. 

  • Investments in UAS and counter-UAS technologies. 

  • $200 million for additional MH-139 Grey Wolf helicopters. 

  • Investments in service-member pay, housing, and quality of life. 

  • Funding to grow our naval fleet and restock our munitions arsenal. 

Pro-Commonsense: 

This legislation reins in federal spending, modernizes outdated systems, and gets people back to work: 

  • Cuts nearly $1.7 trillion in spending—the largest reconciliation savings package in history. 

  • Requires community engagement (work, school, or volunteering) for able-bodied recipients of support programs like Medicaid and SNAP, while providing broad exemptions for caregivers, pregnant women, and the medically frail. 

  • Cancels Biden’s student loan scheme and codifies sensible student loan reforms to bring down the cost of higher education and minimize student debt. 

  • Increases taxes on ultra-wealthy university endowments. 

  • Modernizes the air traffic control system.