New Tax Law Changes For 2025 Tax Returns Part 2

cpa1dev on November 18, 2025

-Increased Child Tax Credit

Makes the expiring child tax credit permanent with an increased maximum of $2,200 in 2025, inflation adjusted thereafter.

-Increased Section 179 Limits

Expands the Section 179 expensing cap to an inflation-adjusted $2.5 million with a phasedown starting when the cost of qualifying property exceeds an inflation-adjusted $4 million; applies after Dec. 31, 2024.

-Partially Refundable Adoption Credit

-Trump Savings Accounts for Eligible Children Born Between 2025-2028 – One Time $1,000

-End of the Electric Vehicle Credit as of September 30, 2025

Additional items included in the bill mainly having an impact on businesses include:

  • Restoration of 100% Bonus Depreciation
  • Restoration of Expensing of Certain R&D Costs
  • Business Interest Deductions Moving Back to the EBITDA standard
  • 100% Expensing for Certain Manufacturing Structures (Temporary)