Not-for-Profit

Certain small businesses may qualify for various federal tax breaks. But different tax provisions use different size tests. Read on to learn more about big tax breaks for small businesses that meet one such test.

Most businesses use December 31 as the end of their fiscal year. But some companies in construction, accounting, and snowplowing operations, for example, may have valid reasons for adopting fiscal year ends. Aligning your tax year with your operating cycle can streamline reporting and support better planning.

Tax credits reduce tax liability dollar-for-dollar and can be more valuable than deductions, which reduce only the amount of income subject to tax. One tax credit that may be valuable is the small business health care coverage credit for small businesses who provide health insurance coverage to employees.

Forms W-2 and 1099-NEC normally must be filed by January 31 of the following year. But, in 2026, January 31 falls on a Saturday, so the due date has been moved to February 2.

The Sec. 179D deduction for energy-efficient commercial building improvements provides energy tax incentives to businesses, including manufacturers, to immediately write off the cost of eligible improvements, will expire June 30, 2026.

As you look back to 2025 to determine which expenses you can write off as tax deductible business expenses on your tax return, keep in mind the “ordinary and necessary” rule.

If your business has employees or independent contractors, you’re subject to various information reporting requirements. Some significant changes to these rules will go into effect for the 2026 tax year (forms that will be filed in early 2027 to report 2026 amounts).

The rules limiting the business interest expense deduction are complicated. Recent changes could result in larger deductions for 2025 and you need to be aware of the impact on your business.