Tax laws change yearly, and 2025 introduces updates that significantly impact industries like oil & gas, construction, and restaurants. Staying informed allows businesses to remain compliant and uncover opportunities for financial savings. Vertices specializes in tailoring tax strategies to industry-specific needs, ensuring businesses are equipped for success.
Corporate Tax Rates: The corporate tax rate has stayed at 21%, however there is still consideration to move it up to 28%, affecting businesses of all sizes. Companies should reassess their tax strategy to ensure alignment with these changes. Read more on Corporate Tax Guidelines.
Deductions and Credits: Updates include increased thresholds for certain deductions, such as depreciation and R&D credits. Bonus depreciation is being phased out, so businesses must capitalize on existing assets before the year’s end. Explore Depreciation and R&D Tax Credits.
Deadlines and Reporting Changes: Stricter reporting requirements for international operations and digital transactions could impact global businesses and e-commerce. Ensure compliance to avoid penalties. Check the 2025 Tax Changes Overview.
Exploration and Production Costs: New limits on intangible drilling cost deductions mean businesses must plan their capital expenditures carefully. Investments in alternative energy projects may offer offsetting tax credits.
Renewable Energy Incentives: The Inflation Reduction Act extended tax credits for renewable energy investments. Oil & gas companies diversifying into renewables can leverage credits for solar, wind, and carbon capture projects. Learn about U.S. Department of Energy Incentives.
Emissions and Carbon Credit Reporting: Enhanced reporting requirements for emissions data require businesses to adopt accurate tracking systems. Non-compliance may result in fines or disqualification from tax benefits. Review EPA’s Greenhouse Gas Reporting Program.
⇒ Vertices’ Strategy Tip: Evaluate all projects under a cost-segregation study to maximize immediate tax savings.
Deductions for Capital Expenditures: The 179D energy-efficient building deduction has increased, providing incentives for eco-friendly building projects. Construction firms should include sustainability in project planning. Explore EnergyStar’s Tax Credits.
Infrastructure Investment Grants: Federal funding initiatives provide tax benefits for construction companies working on public infrastructure projects. Proper documentation is key to claiming these benefits. Read about Bipartisan Infrastructure Law Funding.
Contractor Payment Reporting: New rules for 1099-K reporting on contractor payments aim to close tax loopholes. Ensure all payment methods and records are compliant to avoid audits.
⇒ Vertices’ Strategy Tip: Automate expense tracking and invoicing systems to simplify tax preparation and ensure compliance
Work Opportunity Tax Credit (WOTC): Extended through 2025, this credit allows businesses to claim up to $9,600 per eligible employee. Hiring strategies should target demographics qualifying for this credit. Learn more on the IRS WOTC Page.
Tipped Employee Tax Rules: Updated guidance on tip credit calculation includes stricter reporting rules. Restaurants must ensure employees accurately report all tips to avoid disputes with the IRS. Check IRS Tipped Employees Resources.
Food and Beverage Deductions: With the temporary 100% deduction for business meals set to expire in 2025, restaurants may see a shift in dining habits from other businesses. To adapt, consider prioritizing catering offerings for company-wide events, as these remain 100% deductible under current tax laws.
⇒ Vertices’ Strategy Tip: Develop a tax-efficient payroll system to manage tips, wages, and benefits effectively.
Personalized Tax Planning: Vertices works with your team to identify industry-specific tax opportunities and ensure compliance with the latest regulations. Explore Small Business Tax Tips.
Record-Keeping and Compliance: We offer tools and strategies to streamline record-keeping, ensuring your business is audit-ready.
Expert Guidance: Our advisors stay ahead of legislative changes, helping you leverage every available credit and deduction.
Adapting to 2025 tax changes ensures your business stays competitive and financially optimized. Partnering with Vertices allows you to navigate these complexities with confidence. Contact Vertices for a consultation to ensure your business is tax-ready in 2025.
Taking the time to prepare for the new year financially can position your business for long-term success. From revising budgets to planning for growth, every step you take now will contribute to a prosperous future.
