Here’s a more casual and easy-to-understand version of your article:
Hey, did you know that some tax deductions are like limited-time offers? Most changes from the Tax Cuts and Jobs Act for individuals are only around until 2025. But for businesses, some benefits might disappear even sooner. So, it’s a good idea to make the most of them while they’re still around.
Let’s talk about some tax breaks that you should use before they’re gone.
First up, there’s a tax credit for Paid Family and Medical Leave. Even though it’s not mandatory to offer paid leave to your employees, you could get a tax credit if you do. You just need a written policy that offers at least two weeks of paid family and medical leave and pays at least half of an employee’s usual wages. The credit can be anywhere from 12.5% to 25% of wages, depending on how much you pay. But remember, this only applies to employees who earned $72,000 or less in 2018. This limit might go up for 2019. Just be aware, you can’t claim the credit if the paid leave is covered by state or local government or required by law. This credit expires at the end of 2019.
Next, there’s the Work Opportunity Credit. If you’re hiring, you could get a special tax credit if your new employees belong to certain groups. It’s estimated that 10% to 20% of employees could be in these groups, which include long-term family assistance recipients, veterans, ex-felons, and more. The credit varies depending on the group, ranging from $2,400 to $9,600. But you need to submit a specific form to your state workforce agency within 28 days of the new employee starting work. If you don’t, you can’t claim the credit. This one also expires at the end of 2019.
If you’re thinking about buying an electric-powered vehicle, there’s a tax credit for that too. You could get up to $7,500 back. If the vehicle is for business use, the credit is part of the general business credit. But there’s a catch. The credit starts to phase out once a manufacturer sells more than 200,000 vehicles. For example, Tesla hit this sales landmark in July 2018. So, the full credit only applies to vehicles bought until the end of 2018. For purchases in the first half of 2019, the credit drops to $3,750. It drops again to $1,875 for vehicles bought in the second half of 2019. And after 2019, the credit disappears completely.
Looking ahead, there’s a 100% bonus depreciation allowance for buying equipment and other qualified property. But this is only around until 2022. After that, the percentage starts to decrease until it’s gone in 2027.
Of course, Congress might extend these and other expiring tax breaks, so keep an eye out for updates!
