While most of the country is busy arguing over tariffs, gas prices, and TikTok bans, something much more financially dangerous is sliding through Congress. A sweeping new tax bill backed by House Republicans and heavily influenced by Trump’s campaign promises.
At first glance, it looks like a buffet of tax cuts and shiny new deductions. But dig deeper, and it becomes clear: this bill is a political Swiss Army knife. Designed to lock in parts of the 2017 Trump tax cuts, dismantle Biden-era green energy credits, and shift the tax burden in subtle but serious ways.
Let’s get into what matters for real people running real businesses. Because whether you’re a small business owner, a high-income earner, or an advisor to either, this bill (if passed) will change your tax strategy. Full stop.
The Big Picture: What’s In the Bill?
Here’s the topline pitch: Republicans want to extend the Trump tax cuts, kill off green energy incentives, boost deductions for families and seniors, and introduce some flashy new items like car loan interest deductions, MAGA savings accounts for newborns, and the elimination of taxes on tips and overtime (for a few years).
The bill’s architects are pitching it as “pro-growth, pro-family, and America First.” It also happens to cost $4.9 trillion unless offset… which is why they’re going after:
- EV and clean energy credits
- College endowments and private foundations
- Remittance payments to foreign nationals
- Some loopholes used by closely held businesses
And YES! They’ve got the Employee Retention Credit (ERC) in their sights too. More on that in a minute.
3 Major Impacts for Business Owners (That Aren’t in the Headlines)
Let’s cut through the political posturing. If this bill (or even a watered-down version) gets through, here are three real-world tax shifts that should be on your radar right now:
1. Goodbye ERC Refunds — And Maybe Hello to More IRS Scrutiny
The bill proposes cutting off any ERC claims submitted after Jan 31, 2024. If you’ve filed recently and are still waiting? Prepare for delays. If you haven’t filed yet and think you qualify — you’re out of luck.
Even worse: this kind of policy signals that IRS enforcement around ERC claims is about to heat up again. If your documentation isn’t airtight, now’s the time to get it reviewed. I’ve seen businesses face clawbacks and penalties years after the fact. You don’t want to be next.
2. SALT Workarounds Could Be Gutted for Closely Held Businesses
In recent years, many pass-through entities (like S-Corps and partnerships) have used SALT workarounds to bypass the $10,000 state and local tax deduction cap. This bill specifically targets those loopholes. And some of the language looks like it was written with high-income earners and small firm owners in mind.
Translation: if your tax strategy includes a PTET election or entity-level SALT deduction, you’d better check whether this plan guts its effectiveness.
3. Green Energy Tax Credits Might Vanish Mid-Project
If your business has invested in solar, clean vehicles, battery storage, or other renewable incentives under the Inflation Reduction Act: your credits are now on a ticking clock.
The bill would:
- Eliminate clean hydrogen and commercial EV credits after 2025
- End most solar, wind, and renewable energy credits by 2031
- Add new restrictions on selling tax credits to investors (a major blow to financing structures)
For companies already mid-construction or considering future projects, the message is clear: move fast or lose the benefit.
Other Things to Watch (Especially for Tax Planning Nerds)
Let’s talk about the candy coating. Every tax bill comes with a few sugar cubes. Policies that sound great on paper, look good on a campaign poster, and maybe even offer a few real benefits. But for most business owners, these are more about optics than strategy.
Still, they’re worth knowing… especially if your tax-preparer cousin starts getting wide-eyed over a $150 deduction. Here’s a quick breakdown of the headline-grabbing “feel good” provisions tucked into the proposal:
- MAGA Accounts: $1,000 seed funding for kids born between 2025–2028. Not likely to impact your business, but it’ll play well on campaign flyers.
- No-Tax-on-Tips and Overtime: Sounds great, but expires in 2028. Independent contractors may benefit, but it’s not a long-term strategy.
- Senior Deduction: Adds $4,000 to the standard deduction for people 65+. Short-term perk for elder business owners but phases out at $75K–$150K income levels.
- Car Loan Interest Deduction: Finally, a break that doesn’t require itemizing — but it phases out at $100K for singles and $200K for couples.
- Charitable Deductions for Non-Itemizers: $150–$300 write-off window. Nice, but not game-changing.
Will these changes move the needle for your business? Not really. They’re politically popular, not strategically powerful. But knowing what’s in the bill. Even the soft stuff gives you a sharper edge when it’s time to talk tax strategy.
The real power plays are happening in the background, buried in pages of green energy clawbacks, ERC cutoffs, and pass-through rule changes.
What to Do Now (Before This Gets Real)
This bill is just a proposal. It still has to clear a divided Congress, and there’s plenty of infighting even within the GOP. But smart business owners don’t wait for final votes — they prepare early.
Here’s your move list:
- Review any ERC filings or pending claims ASAP. If you submitted after Jan 31 or are unsure about eligibility, get a second opinion — now.
- Rethink your SALT strategy if you’re using pass-through workarounds. We don’t know the final rules yet, but better to model worst-case scenarios now.
- Accelerate any renewable energy projects — the clock is ticking on major incentives.
- Stay nimble. Expect that deductions, credits, and IRS enforcement targets are going to swing — especially going into an election year. Build a plan that adapts.
I know… this list isn’t long. But even though I tell you to get ready – I want to reinforce something people may overlook at this point. This all has to go through congress before it becomes reality… but make no mistake about it. This administration will push this bill through. In one way or another. Do not doubt that for a second.
Final Thought
Trump’s tax plan is bold, strategic, and packed with politics. But behind the headlines are real tax planning shifts that will hit the wallets of entrepreneurs, high earners, and closely held business owners.
You don’t need to panic. But you do need a plan. 👉 Let’s build yours. Book a free consultation now.
Welcome to the New Age of Accounting. Let’s begin.
Chris is the Managing Partner at Weston Tax Associates, a best-selling author, and a renowned tax strategist. With over 20 years of expertise in tax and corporate finance, he simplifies complex tax concepts into actionable strategies that drive business growth. Originally from Sweden, he now lives in Florida with his wife and two sons.
