Under the new GOP tax bill that passed in July, Florida citizens could see a tax cut of up to $5,000, according to a report from the conservative think tank, the Tax Foundation.
Also, from the same current tax bill, Florida business owners will be able to write off business expenditures retroactively, going back to January of this year.
Some of the provisions include a 100% Bonus Depreciation, which restores and makes permanent 100% bonus depreciation for qualifying assets placed in service after January 19, 2025. Bonus depreciation allows businesses to immediately deduct the full cost of certain eligible assets, such as machinery, equipment, off-the-shelf software, and specific improvements to nonresidential real property.
Florida Daily Financial Analyst Steve Beaman looked at the tax deductions and he says the write-off can deduct from $1.25 million to $2.5 million.
“This will be a big help for small and mid-sized companies in the state that will provide them a quicker deduction than regular depreciation schedules.
Additionally, under the new tax law, Florida businesses can immediately expense domestic research and development (R&D) expenditures incurred in tax years 2025 through 2029. This was intended to expire at the end of this year.
Beaman suggests that increasing deductions by making them permanent or extending them for a temporary period would reduce the tax burden for Florida business owners, freeing up much-needed capital for business expansion and other investments.
While the GOP bill offers tax breaks for businesses and individuals, the White House is exploring additional ideas for tax breaks that would benefit Florida homeowners.
This one includes removing the capital gains tax on home sales. The White House has hinted that a tax cut may be around the corner.
Doug Wheeler, a policy analyst from the James Madison Institute, says they are exploring several ideas for eliminating local property taxes in Florida, which state officials may tackle sometime in September.
