Tax season is right around the corner, and staying ahead of the curve can make all the difference for your construction business. Changing regulations present unique challenges for contractors, which requires proactive attention and thought so that you’re not surprised with a heavy tax burden. Let’s break down some key areas to focus on this year—together, we can turn planning into action.
Take Advantage of Retirement Plan Enhancements
The SECURE 2.0 Act introduces exciting new ways to support your team while reducing your tax liability. From increased catch-up contributions for employees nearing retirement to options for matching student loan repayments, these updates create opportunities for both your employees and your bottom line. Together, we can review your current retirement plan strategy and implement enhancements that make sense for your business.
Don’t Miss the Bonus Depreciation Window
The bonus depreciation phaseout began in 2023, with depreciation starting at 80% and changing to 60% in 2024. If you’re planning investments in equipment or qualifying property, acting now can help you secure higher deductions. By mapping out your investment timeline, you’ll ensure you’re positioned to take full advantage of these savings.
Explore Energy-Efficiency Incentives
The Inflation Reduction Act brings tax credits and deductions for energy-efficient construction projects into sharper focus. Whether you’re building new properties or retrofitting existing ones, these incentives can offset costs while supporting sustainable practices. We can assist in identifying projects that qualify and leveraging these benefits.
Plan for Estate and Gift Tax Changes
With the lifetime gift and estate tax exclusion set to be halved in 2026, now is the time to work closely with advisors to develop a strategic plan. The current $13.61 million exclusion per individual creates an ideal environment for wealth transfer strategies—now is the time to be planful in your legacy and how you provision for your loved ones.
Our Partnership, Your Success
Navigating tax law isn’t just about compliance; it’s about creating opportunities for growth and success. At HORNE, we’re here to collaborate with you every step of the way. Our team is ready to roll up our sleeves, analyze your unique situation, and tailor strategies that align with your goals.
Let’s make 2025 a year of smart planning and stronger results. Reach out today to start the conversation—together, we’ll build a strategy that works for you and your business.
