Major Tax Changes in the 2025 Budget Reconciliation Bill: Key Takeaways

A major budget reconciliation bill was signed into law on July 4, 2025, bringing significant updates to the U.S. tax code for both individuals and businesses. Download our briefing below to learn more about the impact of these changes, including key highlights such as:

• Permanent Individual Tax Cuts: Many individual tax provisions originally set to expire after 2025 are now permanent.
• SALT Deduction Cap Raised: The cap on state and local tax (SALT) deductions rises to $40,000 for 2025, with gradual increases until 2029 before reverting to $10,000 in 2030.
• R&D Expenditures: The Act permanently reinstates the deduction for domestic research and experimental expenses after 2024.
• Business Expensing Made Permanent: Businesses can now permanently expense 100% of eligible property and equipment purchases.

Bottom Line:
These changes make many temporary tax breaks permanent and introduce new deductions. Reach out to your Richey May Tax team to review your tax strategies or reach out to info@richeymay.com for more information.