Check Out A New Resource Designed To Help U.S. Small Businesses Take Advantage Of Tax Changes

As Connecting the Dots readers know, the fiscal year 2026 budget reconciliation recently approved by the U.S. Congress and signed into law includes changes that will reduce tax liability for U.S. businesses, including small businesses. In fact, small business owners can take advantage of many of these tax policies starting right now for expenses dating back to January 20, 2025.

To help firms navigate and capitalize on the changes, the U.S. Chamber of Commerce had created a downloadable guide that outlines the most impactful provisions of the law, including permanent deductions, enhanced credits, and expanded eligibility criteria. The resource provides clear, step-by-step instructions to help business owners navigate the changes and optimize their tax strategies.

For example, did you know that for:

• Businesses with domestic research and development (R&D) spending, especially those with average annual gross receipts of $31 million or less, can deduct 100 percent of qualifying R&D expenses this year on their 2025 tax return.
• Small businesses making new equipment or software purchases, the new tax law more than doubles the maximum amount that a small business may immediately deduct (expense) under Section 179 to $2.5 million. The expensing limit phases out for purchases that exceed $4 million.
• Businesses that provide childcare for their employees can claim a tax credit of up to $500,000 and up to 40 percent of qualified child care expenses. If your business qualifies as small, it can claim up to $600,000 and 50 percent for expenses.