Countdown: 2025 Tax Provisions Set to Expire
As 2025 comes to a close, several important federal tax provisions are scheduled to expire, creating so-called “tax cliffs” that could impact households, businesses, and the broader economy. Lawmakers face critical decisions about which policies to extend, modify, or allow to lapse.
Key areas affected include healthcare subsidies, clean-energy incentives, business hiring credits, and more. Understanding these expirations is essential for planning both personal finances and corporate strategies.
Expiring Tax Provisions
| Provision | Description | Scheduled Expiration | Potential Impact |
|---|---|---|---|
| Enhanced Premium Tax Credit (PTC) | Expanded health insurance subsidies for individual marketplace coverage | Dec 31, 2025 | Higher premiums, potential rise in uninsured population if not extended |
| Clean-Energy Tax Incentives (IRA/OBBB) | Credits for new and used EVs, home energy improvements, residential clean-energy installations | Sep 30 & Dec 31, 2025 | Reduced incentives for clean-energy investment, potential slowdown in EV adoption and home energy upgrades |
| Work Opportunity Tax Credit (WOTC) | Credit for employers hiring from targeted groups (veterans, long-term unemployed, etc.) | Dec 31, 2025 | Reduced incentive for hiring from eligible groups |
| Accelerated Depreciation for Motorsports Property | Allows faster depreciation for certain motorsports facilities | Dec 31, 2025 | May increase costs for venue investment if expired |
| U.S.–Taiwan Expedited Double-Tax Relief | Tax treaty-type relief for specific U.S.–Taiwan financial transactions | Dec 31, 2025 | Limited revenue impact, but affects cross-border transactions |
Why It Matters
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Households: Changes to healthcare subsidies or other benefits could directly affect budgets and coverage.
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Businesses: Expiring incentives may alter investment and hiring decisions.
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Fiscal Policy: Lawmakers’ choices will influence the federal deficit, economic stability, and policy direction for clean energy and labor markets.
Early action is critical. Policymakers, businesses, and households all need to be aware of the upcoming expirations to avoid abrupt disruptions.
Source: Arianna Fano, “Countdown to the Cliffs: Tax Policies Set to Expire at the End of 2025,” Bipartisan Policy Center, July 30, 2025. Read the full article here.