Expiration of the 2017 Tax Cuts

Stay in the Know About Likely Tax Increase Following 2025. Learn how the 2017 Tax Cuts expiring in 2025 could affect your small business.For example, observe changes to deductions, tax rates, and equipment write-offs.

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The 2017 Tax Cuts and Jobs Act That’s Potentially Expiring in 2025

As a small business owner in North Carolina, you’ve felt the effects of the 2017 Tax Cuts and Jobs Act (TCJA). That law brought tangible benefits to many small business owners. However, many of its key provisions are set to expire at the end of 2025. With July already here, it’s time to think about what will change as the clock ticks down.

Stay in the Know About Likely 2017 Tax Cuts Expiring and 20% Deduction for Pass-Through Businesses Could Disappear.

One of the best benefits of the TCJA has been the Qualified Business Income (QBI) deduction. If your business is a sole proprietorship, partnership, or S corporation, you’ve probably been enjoying 20% off your taxable income. It’s been a lifeline for many small businesses, reducing the tax burden and leaving more cash to reinvest or pay bills. By 2026, that deduction will no longer be available unless Congress takes action. Without it, your tax bill will go up, and that’s something to watch as you plan.

Individual Income Tax Rates Could Go Back Up

The TCJA has lowered individual income tax rates across the board. Therefore significant impacts could occur if your business is reported on your return. With 2017 tax cuts expiring less money enters your pocket. If nothing changes by the end of 2025, rates will revert to their previous levels. For example, the 24% bracket could increase to 28%, and the top rate could rise from 37% to 39.6%. It’s not a big jump, but every percentage point counts when you’re juggling payroll, supplies, and everything else. Therefore if 2017 tax cuts are expiring, its best to prepare your finances accordingly.

Equipment Write-Offs Will Shrink

Another part of the TCJA that’s been a win is the increase to Section 179 and bonus depreciation in the tax code. Right now, you can write off up to $1.22 million in equipment purchases—like a new delivery van or office equipment—in one year (adjusted for inflation in 2025). Additionally, 100% bonus depreciation allows you to deduct the full cost of certain assets in the first year. After 2025, those limits could shrink or phase out, which will slow down the rate at which you can recover those costs. That means tighter cash flow for future upgrades or expansions.

Why the Tax Cuts and Jobs Act Matters Now

With the expiration date approaching, there’s still time to adjust your strategy in response to potential changes in the tax law. Lawmakers in Washington might extend some of these breaks, modify them, or let them expire—nobody knows yet. Therefore, stay informed and stay alert as 2025 unfolds. Next, talk to a tax pro (like the folks at Franek Tax Services) to figure out what makes sense for your business. The TCJA’s end won’t affect everyone the same, but knowing what’s at stake will help you stay ahead of the curve. Therefore small business owners don’t panic! Call Franek!

Stay in the Know About Likely Tax Increase Following 2025