Key Tax Deductions & Credits for Businesses in 2025

Embrace Proactive Financial Management

Mid-year is the perfect time for business owners to reassess their tax strategies and prepare for the future. The ability to save money and reduce tax burdens is at the forefront of every business owner's mind, and thoughtful planning can reveal powerful deductions and credits—some of which may soon expire. Tax law can be complex, but with the right knowledge, you gain clarity and control.

Uncover Valuable Tax Deductions and Credits

Let's explore some key deductions and credits for your business:

• Qualified Business Income Deduction: Sole proprietors, partnerships, S-Corps, and LLCs can benefit from a 20% deduction on qualified business income. This opportunity is set to expire at the end of 2025, so timely action is essential.
• Section 179 Deduction and Bonus Depreciation: In 2025, businesses can deduct the full purchase price of qualifying equipment and software. The bonus depreciation applies to both new and used assets—a boon for companies wishing to grow and upgrade.
• Research and Development Tax Credit: Not just for tech companies, this credit is for any business improving its products or processes. Consider whether your work may qualify for this beneficial credit.
• Home Office Deduction: Using a portion of your home exclusively for business could allow you to deduct rent, utilities, and internet expenses. Ensure you meet the "regular and exclusive use" criteria.
• Business Vehicle Expenses: There are two methods to deduct vehicle expenses: track actual expenses or use the standard mileage rate. A detailed mileage log is crucial for maintaining accuracy in claims.
• Meals and Entertainment Deduction: Business meals with clients or employees are 50% deductible in 2025. Be sure to note which meals qualify under this category.
• State and Local Tax Deductions (SALT): With the federal $10,000 SALT cap, PTE elections offer a means for pass-through entities to manage state taxes efficiently.

Take Action for Your Unique Business Needs

Every business is unique; not every deduction will apply to all. Use mid-year as a strategic opportunity for tax check-ins and consider the benefits of professional tax planning. Review your current tax strategy or schedule a personalized consultation to maximize the benefits available to your business.