As President Donald Trump begins his second term in 2025, the business landscape in the United States is poised for further shifts under new tax policies. Trump’s first term was marked by significant tax cuts and pro-business reforms, particularly through the Tax Cuts and Jobs Act (TCJA) of 2017. As Trump returns to office, his administration is expected to continue advocating for tax policies that prioritize business growth, deregulation, and corporate profitability. This article explores what businesses—ranging from small startups to large multinational corporations—can expect under the tax laws in the Trump administration’s 2025 agenda.
- Corporate Tax Rate: Continuation of Pro-Business Tax Cuts
One of the most significant achievements of the Trump administration’s first term was the reduction of the corporate tax rate from 35% to 21% under the TCJA. This move was hailed as a major boost for U.S. businesses, helping companies reinvest profits, create jobs, and boost shareholder returns. Under a second Trump term, it is highly likely that the corporate tax rate will remain at this level or even be reduced further, depending on political dynamics.
Trump’s continued focus on economic growth through business-friendly policies suggests that businesses can expect to benefit from lower corporate taxes for the foreseeable future. In 2025, Trump is expected to push for a permanent reduction in the corporate tax rate and may explore additional tax incentives for companies that invest in American manufacturing, research and development, or job creation. These tax cuts would particularly benefit large corporations with substantial earnings and global operations.
- Business Incentives for Reinvestment: Expanding Capital Investment
Under the TCJA, one of the key provisions aimed at encouraging business investment was the introduction of “expensing” provisions, which allowed companies to immediately deduct the cost of capital investments (such as new equipment, machinery, and technology) instead of depreciating them over several years. This incentive was designed to spur growth and encourage businesses to invest in their operations, especially following the tax cuts.
In 2025, businesses can expect to see continued support for capital reinvestment, with potential further expansions of expensing opportunities. Under Trump’s second term, new policies may be introduced to incentivize businesses to make long-term investments, particularly in key sectors such as clean energy, infrastructure, and advanced technologies. These incentives would help American businesses remain competitive on the global stage and potentially lead to a surge in domestic investments.
- Deregulation: Reducing Burdens on Small and Large Businesses
Deregulation was a cornerstone of Trump’s first term, and it is expected to remain a central focus of his second term. Trump’s administration worked to reduce regulatory burdens on businesses, particularly in sectors like energy, healthcare, and finance. For businesses across all industries, this meant fewer compliance costs and greater flexibility in operations.
As President Trump’s second term unfolds, businesses can anticipate further deregulation efforts, especially in industries like banking, environmental protections, and labor laws. For small businesses, these changes could mean fewer bureaucratic hurdles, potentially making it easier to launch new companies or expand existing ones. Large corporations may also benefit from deregulation by having more room to innovate without the constraints of stringent regulations.
- Tax Incentives for Domestic Manufacturing and Job Creation
Trump has long championed the cause of American manufacturing and bringing jobs back to the U.S. In his second term, it’s expected that he will continue to introduce tax incentives aimed at encouraging companies to bring manufacturing jobs back to America. This could include tax credits, deductions, or preferential tax rates for businesses that invest in U.S.-based production facilities and create American jobs.
Businesses with a global footprint may find additional tax advantages for reshoring operations, bringing production from overseas back to U.S. soil. This would align with Trump’s “America First” economic agenda and provide significant advantages for companies in industries like tech, automotive, and consumer goods that are looking to capitalize on the resurgence of domestic manufacturing.
Additionally, Trump’s administration is likely to continue offering tax incentives for companies investing in Opportunity Zones, which were introduced under the TCJA to spur economic development in distressed areas. These zones could continue to be an attractive option for businesses looking to expand or invest in underdeveloped regions.
- International Taxation: Protectionist Policies and Tax Havens
Under Trump’s first term, U.S. tax policies were increasingly focused on protecting American interests from the impact of global taxation. The Tax Cuts and Jobs Act included provisions that allowed U.S. companies to bring foreign profits back to the United States at a reduced tax rate. This approach was intended to encourage businesses to repatriate capital and reinvest it in the U.S.
In 2025, businesses with international operations can expect further pro-business international tax policies, including a focus on reducing the tax burden on foreign earnings and facilitating repatriation of funds. Trump’s second term may see an expansion of policies that incentivize multinational corporations to keep their profits in the U.S. by offering lower tax rates on global income or additional tax credits for domestic investment.
However, U.S. businesses operating in foreign markets may face increasing scrutiny from global organizations like the OECD, which has pushed for greater regulation of tax havens and multinational tax strategies. While Trump may oppose such efforts, businesses will need to stay informed about international tax compliance issues to ensure they remain in line with evolving global standards.
- Corporate Social Responsibility and Public Relations: Navigating New Norms
As businesses continue to play an increasing role in shaping society, Trump’s second term may also bring about a shift in how businesses approach social responsibility and environmental sustainability. Although the administration is likely to favor deregulation in environmental policies, businesses may still face public pressure to adopt more sustainable practices, especially from consumers and activists who expect corporations to contribute positively to society.
While tax incentives for environmental initiatives may not be as robust as those seen under more progressive administrations, businesses may find new ways to use tax strategies to enhance their sustainability programs, from green technologies to energy-efficient production processes. Corporate social responsibility (CSR) initiatives may still receive indirect support through favorable tax deductions or credits for businesses that invest in environmental stewardship.
Conclusion: The Outlook for Businesses Under Trump’s New Tax Laws in 2025
Under President Donald Trump’s second term, U.S. businesses can expect to benefit from a continued pro-business tax environment, with a focus on low corporate tax rates, deregulation, and incentives for reinvestment and job creation. From large corporations to small businesses and pass-through entities, Trump’s tax policies are designed to boost profitability, encourage expansion, and make America an attractive place for both domestic and global investment.
With an emphasis on capital investment, deregulation, and incentives for domestic manufacturing, businesses will be positioned to thrive under the tax policies of the Trump administration. However, businesses will also need to stay agile in navigating potential changes in international tax dynamics and evolving public expectations for corporate responsibility.
For those looking to grow, innovate, and invest in the future, the Trump administration’s 2025 tax laws offer a favorable environment for expansion, job creation, and long-term business success.
Please contact your WFY advisor or contact us here to discuss this topic. You can also sign-up for our newsletter here to receive more updates.
Wright Ford Young & Co. is headquartered in Irvine, CA and is one of the largest local CPA firms in Orange County. WFY is a full service corporate accounting firm offering audit, tax, estate and trust, and business consulting services to closely held company and family business owners. More information about our Firm can be found at www.cpa-wfy.com.