Tax law changes & status

The state-and-local-tax (SALT) deduction is capped at $10,000 per return ($5,000 married filing separately) — a combined limit on state income tax, local tax, and property tax. Enacted by the 2017 TCJA and originally set to expire after 2025. Treat any specific post-2025 cap figure as provisional until the current tax-legislation cycle is finalized; this page is updated when it is.

First-year "bonus" depreciation on qualifying assets is phasing down on the TCJA schedule below. Several proposals would restore 100% expensing; until one is enacted, the phase-down rates apply.

Section 179 lets a business deduct the full cost of qualifying equipment in the year placed in service. For 2025: up to $1.22M, phasing out dollar-for-dollar once total equipment purchases exceed $3.05M. Limits are indexed for inflation annually. Unlike bonus depreciation, Section 179 is not scheduled to phase down — but it can't create a business loss.

The 20% qualified-business-income deduction begins phasing out for specified service businesses at $241,950 taxable income (single) / $483,900 (married joint) for 2025, completing $50k / $100k higher. These thresholds adjust for inflation every year. The deduction itself was created by the TCJA and shares its post-2025 sunset risk.

Many individual TCJA provisions — the current bracket schedule, the (roughly doubled) standard deduction, the SALT cap, and the QBI deduction — were written to expire after 2025. Whether they're extended, modified, or allowed to lapse is decided by the 2026 legislative cycle. We update the affected figures here as outcomes are confirmed.