Major Tax Overhaul in 2025: How to Maximize the BenefitsAttention business owners, investors, and entrepreneurs: Congress’ latest tax package — building on the 2017 Tax Cuts and Jobs Act — introduce

Tyler N
Jun 26
3 min read

Attention business owners, investors, and entrepreneurs: Congress’ latest tax package — building on the 2017 Tax Cuts and Jobs Act — introduces powerful, lasting provisions. Here's how to leverage them to save money, boost wealth, and grow your business.

Click Me

21% Corporate Tax Rate — Forever

A flat 21% corporate tax rate is now permanent, eliminating the old 35% bracket and repealing the corporate AMT reddit.com +11taftlaw.com +11reaadvisory.com +11. If you're currently operating as an LLC, partnership, or sole proprietor, consider forming a C corp to benefit from this stable, low tax rate.

Enhanced Pass-Through Deduction (Section 199A)

Pass-through entities like S corps, LLCs, and partnerships can now claim a 23% deduction on Qualified Business Income (QBI), up from 20% taftlaw.com +2taxfully.com +2hvac-blog.acca.org +2. That means your effective tax rate could drop to 29.6%. For example, $200K in qualified income now saves you ~$6K more annually .

Sole Proprietor Warning

Working under a Schedule C (sole proprietorship) flags high audit risk—and you pay 100% self-employment tax. Switching to an S corp can significantly reduce both payroll taxes and IRS scrutiny.

S Corp Salary Strategy

Balance is key. Pay too little and the IRS may reclassify your income; too much and you overpay payroll taxes. Collaborate with your CPA to find the "sweet spot" for salary vs. distributions.

Solar & Depreciation Incentives

Here’s where the bill gets especially aggressive:

30% Investment Tax Credit (ITC) for residential and commercial solar through 2032 taxfully.com +1hvac-blog.acca.org +1americanprogress.org +12tax.thomsonreuters.com +12greentechmedia.com +12
85–100% bonus depreciation for equipment placed into service during 2025–2029 hvac-blog.acca.org

Together, these provisions can cover ~2/3 of solar installation costs—massive ROI.

EV & Charging Station Credits

The $7,500 electric vehicle credit is temporary and could disappear by end of 2025 reddit.com +4greentechmedia.com +4journalofaccountancy.com +4.
Credits for EV charging infrastructure are also under threat reddit.com +9greentechmedia.com +9reddit.com +9.

If you're planning EV purchases or charging station investments, act now.

Section 1202 — Tax-Free Sale for C Corps

Own a C corp and hold your stock for at least five years? Section 1202 may allow you to sell the business entirely tax-free, eliminating capital gains on up to $10M (or 10× basis) reddit.com +1taxfully.com +1.

Strategic Move-List: What to Do Now

Move off Schedule C: Transition to an S or C corp.
Form or Convert to a C or S Corp: Capitalize on low corporate tax or pass-through deductions.
Invest in Solar & EV Infrastructure: Install before key credits expire.
Optimize S Corp Compensation: Fine-tune salary/distribution mix with CPA guidance.
Plan Section 1202 Stock Holding: Aim for the 5‑year exit window.
Engage a Proactive Tax Advisor: Don’t wait — have your plan ready now.

Why It Matters

Taxes are likely your largest ongoing expense. These provisions are designed to:

Free up cash for reinvestment
Create massive savings
Secure competitive advantages

Without a strategy tailored to these updates, you’re missing out.

Learn More

Official breakdown of the 2025 tax reform and its small-business implications greenlancer.com +2reaadvisory.com +2kiplinger.com +2.
Detailed info on solar and clean-energy credits through 2034 calt.iastate.edu +1journalofaccountancy.com +1.
Insights into expiring EV incentives and Section 1202 benefits calt.iastate.edu.