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Understanding tax credits is essential for businesses looking to optimize their financial strategy. In 2025, companies across various industries—including multifamily housing, SaaS, and self-storage—can leverage tax incentives to reduce their tax burden and improve cash flow.

1. Section 179 Tax Credits: Immediate Expensing for Asset-Heavy Businesses

The Section 179 deduction allows businesses to deduct the full cost of qualifying equipment and property in the year of purchase, rather than depreciating it over time. For 2025, the deduction limit is $1.25 million, with a phase-out threshold starting at $3.15 million (IRS, 2025).

Industries like self-storage, multifamily housing, and campgrounds benefit greatly from this deduction, as they frequently invest in property upgrades and new equipment.

As an idea a self-storage facility that purchases $1 million in security upgrades and automation software can fully deduct these costs, reducing taxable income immediately.

2. Bonus Depreciation Tax Credits: A Limited-Time Opportunity

Bonus depreciation allows businesses to write off a large percentage of eligible asset costs in the first year. However, the 2025 rate drops to 60% as part of a phase-out set by the Tax Cuts and Jobs Act (IRS, 2025).

Industries such as mobile home parks, hotels, and marinas can use this incentive to rapidly recover costs for large-scale investments like infrastructure improvements. Check out our insights here.

3. R&D Tax Credits: A Major Win for SaaS and Tech Firms

The Research & Development (R&D) Tax Credit provides incentives for companies developing new products, software, or processes. As of 2025, businesses must comply with revised IRS reporting standards requiring detailed documentation (IRS, 2025).

For SaaS companies and private equity funds investing in fintech, this credit can significantly offset development costs.

4. Energy-Efficient Tax Incentives: Green Savings for Multifamily & Hospitality

The Energy-Efficient Commercial Buildings Deduction (Section 179D) allows property owners to deduct up to $5.00 per square foot for implementing energy-efficient lighting, HVAC, and insulation (DOE, 2025).

• Multifamily housing operators can upgrade to smart HVAC systems.
• Hotel owners can install energy-efficient water heating systems.
• Short-term rental hosts can retrofit properties with sustainable lighting.

5. Low-Income Housing Tax Credit (LIHTC): Essential for Multifamily Developers

The LIHTC program offers significant tax credits to developers investing in affordable housing. The total available credit allocation for 2025 is projected to be $10.5 billion (HUD, 2025).

This is particularly relevant for multifamily housing investors and private equity funds seeking long-term tax advantages while contributing to community development. Want to simplify? Discover how outsourcing services can streamline financial management.

6. Tax Credits Sunsets: Preparing for Expiring Provisions

Several key provisions of the Tax Cuts and Jobs Act (TCJA) expire in 2025, including:

• The 20% pass-through deduction (Section 199A) for small businesses and private equity funds.
• The phasedown of bonus depreciation (from 60% in 2025 to 40% in 2026).

Businesses must proactively adjust their tax strategy to maintain benefits (Tax Foundation, 2025).

7. State-Specific Tax Incentives: Hidden Opportunities for Niche Industries

Many states offer additional tax credits that benefit niche industries:

• Florida & Texas: No state income tax, ideal for mobile home parks and self-storage businesses.
• California: Green energy tax incentives for marinas and hotels adopting solar power.
• Wyoming: Cryptocurrency-friendly tax policies benefiting blockchain startups (Investopedia, 2025).

Tax credits present a powerful way for businesses to maximize their savings while investing in growth. By leveraging available incentives and preparing for future tax changes, companies can ensure long-term financial success.

Take Action Now:

At Parikh Financial, we specialize in helping business owners streamline operations, improve cash flow, and have tax solutions.

Ready to optimize your financial management? Contact us today to explore customized services.

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