The Tax Cuts and Jobs Act provided a number of tax breaks for individuals, and most of those are good through the year 2025. However, many of the business tax cuts will be expiring sooner so it’s time to take advantage of them while you have the chance!
100% Depreciation
Until 2022, you are able to depreciate equipment purchases and other qualified property 100% immediately. This will then phase out through 2027. There is always the chance that this tax break and others will be extended, so watch the news or ask your business accountant.
Electric Vehicles
As an individual or a business, purchasing an electric vehicle earns you a tax credit between $2500 to $7500 until the manufacturer has sold 200,000 units within the US. The US Dept of Energy provides an alternative fuels data center to find out if your vehicle qualifies.
Paid Medical and Family Leave
You can receive a tax credit from 12.5% to 25% of employee wages until December of 2019 if:
- You provide, in writing, at least two weeks of paid medical and family leave
- You pay at least 50% of employee wages during their leave
- Your company earned $72,000 or less in 2018 (this amount could increase in 2019)
Work Opportunity
If your business is able to hire employees including specially considered groups, you could be eligible for this tax credit. Qualified groups include, but are not limited to:
- Qualified veterans
- Ex-felons
- Vocational rehabilitation referrals
- Summer youth employees
- Supplemental Nutrition Assistance Program (SNAP) recipients
- Qualified long-term unemployment recipients
- Long-term family assistance recipients
As an employer, you must acquire certification that proves the employee is, in fact part, of the targeted group. Then you will have to file Form 8850. Credit amounts range from $2400 to $9600 depending on the group your employee is in. You can claim this for qualified veterans that begin work before January 2020.
