The Top Tax Changes of 2025: Everything Business Owners Should Know

Are you up-to-date with all the new tax credits 2025 brought? Navigating the changing tax landscape can be an overwhelming prospect, especially when tweaks are made throughout the year.

Whether you run a C-corporation, partnership, or small LLC, it’s important to understand how tax season 2025 changes will impact you when it comes time to filing. 

Qualified Business Income (QBI) Deduction Adjustments

A big win for business owners in 2025 is that the 20% QBI deduction has been made permanent. This deduction was previously set to expire after 2025. It allows S-corp owners, sole proprietors, and LLC members to deduct 20% of qualified business income on their individual returns.

It boosts smaller enterprises that may not have qualified under the older rules as it expands eligibility, including a minimum deduction of $400 for anyone with at least $1,000 of active business income.

Research and Development (R&D) Deductions Became More Flexible 

One of the new tax laws 2025 brought us was creating more tax-friendly options for research and development. Now, R&D expenses can be fully deducted in the year they occurred, rather than amortized over many years. 

This gives innovators and tech firms immediate tax relief. Also, this change benefits labs, startups, and other companies in competitive fields that are planning to accelerate product development. 

100% Bonus Depreciation Returned

A major comeback to IRS updates 2025 is bonus depreciation, allowing companies to write off the full cost of qualifying business assets in the year they’re placed in service.

Therefore, for property acquired on or after January 19th, 2026, a business is now able to take 100% first-year depreciation instead of spreading deductions over several years. 

Clean Energy Credits and Incentives are Narrowed

While many clean energy tax incentives have been introduced in previous years, they are now currently phasing out or tightening under new law. 

If you are a business planning to invest in solar, wind, EV fleets, or energy-efficient upgrades then it is important to educate yourself on this.

Payroll and Withholding Rules Update

Your business’s payroll reporting and withholding procedures will be affected by IRS updates 2025 saw. A small business accountant will provide you with all the information you need as some interpretations differ and guidance is still evolving. 

What Does This Mean for Your Business?

Understanding the new tax laws 2025 brought us is crucial as a business owner. Some provisions are beneficial, whereas others require careful forecasting.

Every business is different and you’ll benefit from a tailored approach from a small business tax accountant.

Contact SD Associates, P.C. to Learn More About New Tax Laws 2025

At SD Associates, P.C., we are experts in the new tax laws 2025 saw. We will walk you through tax season 2025 so that you know everything you need for the upcoming tax season. 

From understanding the tax credits 2025 brought to providing you with expert advice from a small business accountant, we are here to guide you through the entire tax planning process.

Schedule an appointment today to learn more!