QBI deduction

20 % deduction, W-2 wages / qualified property limitation phase-in threshold $ 50,000($ 100,000 joint), no minimum deduction

Phase-in threshold increased to $ 75,000($ 150,000 joint); $ 400 minimum deduction for active business income

Expands eligibility and benefit for small and mid-sized businesses, especially active participants. More businesses can claim the deduction and benefit from a higher minimum.

Bonus Depreciation

100 % bonus depreciation phased out after 2022, dropping to 0 % after 2026

100 % expensing for qualified business property made permanent; transitional options for reduced percentages in 2025

Major incentive for capital investment; businesses can immediately expense the full cost of qualifying property, improving cash flow and reducing taxable income.

Section 179 Expensing Limits

$ 1 million limit, phaseout at $ 2.5 million

Limit increased to $ 2.5 million, phaseout at $ 4 million, indexed for inflation

Increases ability of small and medium businesses to expense equipment and property purchases.

Full Expensing of Domestic R & D

Domestic R & D amortized over 5 years( 15 for foreign)

Domestic R & D can be fully expensed immediately; foreign R & D remains 15- year amortization

Incentivizes domestic R & D investment; immediate deduction improves cash flow for innovative businesses