Here’s a sampling of some significant tax law changes going into effect this year:
- Increase of the Section 179 expensing limit to $2.56 million and the phaseout threshold to $4.09 million (up from $2.5 million and $4 million, respectively, for 2025).
- Expansion of the income ranges over which the Section 199A qualified business income deduction limitations phase in, generally to $201,750 – $276,750 (up from $197,300 – $247,300 for 2025), double those amounts for married couples filing jointly.
- Reduction of the threshold for the excess business loss limitation to $256,000 (down from $313,000 for 2025), double those amounts for joint filers.
- Increase of the limitation on the use of the cash method of accounting to $32 million (up from $31 million for 2025).
- Elimination of certain clean energy incentives, such as the Section 179D deduction for energy-efficient commercial buildings and the alternative fuel vehicle refueling property credit (both after June 30, 2026).
Contact the office to discuss how these or other changes might affect your business.