Under the new GOP tax bill passed in July, Florida citizens were able to see tax cuts of up to $5,000, according to a report by the Tax Foundation, a conservative think tank.
Also, from the same current tax bill, Florida business owners can retroactively amortize business spending, dating back to January this year.
Some provisions include 100% bonus depreciation. This recovers and creates permanent bonus depreciation for qualification assets used after January 19, 2025. Bonus depreciation allows companies to immediately deduct all costs of certain eligible assets, such as machinery, equipment, off-the-shelf software, and certain improvements to non-regular assets.
Florida Daily Financial Analyst Steve Beyman looks at the tax credit and says amortization can be deducted from $1.25 million to $2.5 million.
“This will be a huge help for small and medium-sized businesses in the state, which offers faster deductions than the usual depreciation schedule.
Additionally, under the new tax law, Florida businesses can immediately spend domestic research and development (R&D) expenditures arising from 2025 to 2029. This is intended to expire at the end of this year.
Beaman has suggested that increasing the deduction by making it permanent or temporarily extending it will reduce the tax burden on Florida business owners and free up capital needed to expand their business and other investments.
The GOP bill offers tax credits to businesses and individuals, but the White House is exploring additional ideas for tax cuts that will benefit Florida homeowners.
This includes removing capital gains tax on home sales. The White House suggests that tax cuts could be round the corner.
Doug Wheeler, a policy analyst at the James Madison Institute, says he is exploring several ideas to eliminate local property taxes in Florida.
