What the 2025 Tax Bill Means for You: Key Changes for Individuals, Business Owners, and Investors

Congress is moving forward with a big new tax bill, and it could bring some important changes starting in 2025.

To make it easy to understand, I’ve created a short summary with the key points — what’s changing, when it starts, and who it might affect. It covers everything from tax rates and deductions to business write-offs, EV credits, and even online purchases from places like Temu.

✅ INDIVIDUAL TAX CHANGES

Provision	Start	Retroactive?	Notes
🧒 Child Tax Credit ($2,500)	2025–2028	❌	Requires SSN / Citizenship
📈 Standard Deduction	2025	❌	$30K for joint filers, adjusted for inflation
🏡 SALT Cap Increase	2026	❌	Raised to $30K (phased down above $400K income)
💸 Pease Limitation Returns	2026	❌	Caps benefit of deductions to 35%
💵 Tip & Overtime Deduction	2025–2028	❌	Not for income > $160K
👵 Senior Deduction ($4K)	2025–2028	❌	AGI must be <$75K/$150K
🚗 Car Loan Interest Deduction	2025–2028	❌	Up to $10K (with AGI phase-outs)
🐣 MAGA Kids Savings Account	2025	❌	New tax-favored account for children under 8

💼 BUSINESS & INVESTMENT TAX CHANGES

Provision	Start	Retroactive?	Notes
🛠️ 100% Bonus Depreciation	Jan 19, 2025	❌	Applies through 2029
🔬 Research Deduction (174)	Jan 1, 2025	❌	Choose full deduction or amortize
🧾 Interest Deduction (163j)	Jan 1, 2025	❌	EBITDA method returns
💰 Section 179 Expensing	Jan 1, 2025	❌	Limit raised to $2.5M
🧾 Section 199A Deduction	2026	❌	Increases to 23%, new SSTB limits on PTETs
🧮 Opportunity Zones Expanded	2025	❌	New zones, new reporting rules

🌍 INTERNATIONAL / MULTINATIONAL

Provision	Start	Retroactive?	Notes
🌐 GILTI & FDII Rates Stay	2026	❌	Keeps 50% / 37.5% deductions
🛡️ Section 899 Penalty Tax	Varies	❌	Targets countries w/ digital taxes, up to 50% withholding
⚖️ BEAT Rule Tightening	2026	❌	Broader rules apply to more companies

🏥 EMPLOYER/HR-RELATED

Provision	Start	Retroactive?	Notes
🏥 CHOICE Health Plans	2026	❌	Like ICHRA, lets workers buy their own insurance
👶 Childcare Tax Credits (45F)	2026	❌	Higher credit for employers providing care
🎓 Student Loan Help (127)	2026	❌	Employer-paid student loan benefits made permanent
👨‍👩‍👧‍👦 Paid Leave Credit (45S)	2026	❌	Permanent extension for paid family leave

🌱 CLEAN ENERGY & IRA CREDIT CHANGES

Provision	Start	Retroactive?	Notes
❌ Ends EV Credit (30D)	2026	❌	Except for “qualified manufacturers” (likely U.S.-based, meets content rules)
⚠️ Ends Home Energy Credits (25C, 25D)	2026	❌	No more credits for windows, solar panels, etc.
🔄 Transferability Limits	2027+	❌	Fewer energy credits can be sold/traded
🏭 Foreign-Entity Limits	2026–2027	❌	Facilities owned by certain foreign countries lose credits

📦 DUTY-FREE IMPORT LIMITS

Provision	Start	Retroactive?	Notes
📦 $800 De Minimis Limit Tightened	~30 days post-enactment	❌	May exclude some countries/products (e.g., Temu, Shein)