5 Key Tax Law Changes to Watch in 2025
A Shifting Landscape
The upcoming year brings a series of pivotal adjustments to the tax code. Understanding these changes is crucial for both personal financial planning and business strategy. This article breaks down the top five modifications you need to be aware of.
1. Adjustments to Individual Income Tax Brackets
Inflationary adjustments have led to a shift in the income thresholds for all seven federal tax brackets. This means you might fall into a lower bracket than last year, even if your income has slightly increased.
2. Enhanced Green Energy Credits
In a push for sustainability, the government has expanded tax credits for energy-efficient home improvements and electric vehicle purchases. The credit for solar panel installation, for instance, has been increased to 30% with no cap.
What This Means for Your Business
For small business owners, changes to capital gains and depreciation rules could significantly impact your tax liability. It's essential to consult with a professional to tailor your strategy accordingly.
