Tax Bills 2026: CPA Guide to the Legislative Agenda

As we move deeper into the second quarter of 2026, Washington is quietly working through a stack of tax legislation that could meaningfully affect how our clients plan for the rest of the year and beyond. The tax bills 2026 agenda is unusually crowded for a midterm election year, spanning everything from disaster relief extensions to cryptocurrency regulation to the long-running debate over Affordable Care Act premium tax credits. At SW Accounting & Consulting Corp, we’ve been tracking these developments closely because many directly touch the planning conversations we’re having every day with small business owners, high-net-worth families, and real estate investors across Southern California.

While sweeping reform is unlikely this cycle, several already-passed bipartisan bills are headed toward implementation, and a handful of targeted reconciliation items could slip into larger legislative vehicles later in the year. Here’s what we’re watching, why it matters, and how to think about planning around a moving target.

What Is “Reconciliation 2.0” and Why Does It Matter?

The Republican Study Committee (RSC) has circulated a proposal informally referred to as “Reconciliation 2.0” — a wish list of tax provisions that individual members hope to attach to future budget reconciliation packages. EisnerAmper tax director Sarah Adkisson has publicly noted that the odds of passage as a single package are low. That said, reconciliation packages historically absorb popular provisions piecemeal.

Among the most notable items:

• Estate tax repeal — full elimination of the federal estate tax, significantly reshaping legacy planning for high-net-worth families.
• READY Accounts — new tax-exempt savings accounts for disaster preparation and recovery, particularly relevant for California homeowners in wildfire/earthquake zones.
• Capital gains exemption for first-time homebuyers — aimed at lowering the mortgage barrier in high-cost housing markets.
• Affordable housing expansion and marriage penalty relief for certain filing scenarios.
• Work Opportunity Tax Credit (WOTC) extension — a perennial bipartisan favorite that incentivizes hiring from targeted groups.

From a CPA’s perspective, WOTC extension and housing-related provisions are most likely to be quietly included in larger bills. We typically advise business clients not to restructure hiring decisions solely around WOTC availability, but if extended, documentation discipline becomes critical.

Which Bipartisan Bills Have Already Passed?

Despite the partisan noise, several genuinely bipartisan tax administration bills have already cleared significant legislative hurdles in 2026.

The Disaster Related Extension of Deadlines Act is particularly meaningful for California clients. It extends refund claim deadlines in federally declared disaster areas, addressing a long-standing unfairness in which taxpayers displaced by wildfires or floods could lose their refund windows.

The IRS MATH Act requires the IRS to clearly explain the changes being made when issuing math error notices. The BARCODE Efficiency Act, passed by House Ways & Means, mandates expanded use of barcode and OCR technology to reduce manual processing delays. The Senate Finance Committee’s Taxpayer Assistance and Service Act includes paid preparer continuing education requirements and new penalties for preparer misconduct.

How Will Cryptocurrency Tax Bills 2026 Change Reporting?

Two pieces of digital asset legislation are in motion. The CLARITY Act, which has already passed the House and is pending in the Senate, establishes a regulatory framework dividing jurisdiction between SEC and CFTC over digital assets. Classification determines which reporting regime applies.

The PARITY Act is more squarely a tax bill — it would treat digital assets similarly to traditional financial assets under the Internal Revenue Code, potentially eliminating odd wash-sale asymmetries favoring crypto traders. Senator Lummis is retiring at end of term and may push a legacy cryptocurrency package in the second half of 2026.

For clients with meaningful crypto holdings, we recommend proactive basis documentation and wallet-level recordkeeping. Track bill progress on Congress.gov.

What Happens to ACA Premium Tax Credits?

The enhanced premium tax credits under the ACA remain the single biggest open question for individuals. The extension was blocked during last year’s government shutdown, and expiration already affects 2026 marketplace renewals.

Two competing proposals: the CARE Act (Collins-Moreno bipartisan) provides a two-year extension with an income cap — a compromise addressing concerns about subsidies to higher earners. The Breaking the Gridlock Act passed the House with 17 Republicans supporting a cleaner three-year extension without income cap.

For self-employed clients and small business owners relying on marketplace coverage, we recommend modeling both scenarios. The difference between the enhanced credit continuing and reverting to pre-2021 levels can easily exceed $5,000 per household at middle-income levels.

How Do These Tax Bills Compare?

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