🚨 H.R.1 Decoded: The 5 Tax Changes Every E-Commerce Seller Must Know

📊 The Bottom Line Up Front

💰 Change #1: 100% Equipment Write-Offs (Retroactive!)

Section 111001 - Bonus Depreciation Extension

What Changed:
100% bonus depreciation restored through 2030 for equipment purchased after January 19, 2025 - retroactively applied.

Strategic Implication:
If you bought warehouse automation, packaging equipment, or fulfillment technology since January 20th, you can now write off 100% immediately. Every dollar spent reduces your tax liability by 22-37 cents.

⏰ Your Next 30 Days:
Review all equipment purchases since January 20th for immediate write-offs. Plan remaining 2025 equipment investments to maximize this benefit. For example, a $50K warehouse management system bought in March now saves you $11K-18.5K in taxes.

🎯 Critical Retroactive Date: January 20, 2025

💻 Change #2: Software Investment Explosion

Section 111103 - Section 179 Increase

What Changed:
Section 179 equipment expensing increased from $1.25M → $2.5M annually.

Strategic Implication:
You can now immediately deduct $2.5M in equipment and software purchases per year. This retroactively benefits 2025 purchases and favors capital purchases over subscription models.

⏰ Your Next 30 Days:
Audit software purchases since January for immediate deductions. Convert remaining 2025 subscriptions to annual licenses where possible. Annual licenses often qualify for immediate deduction while monthly SaaS payments don't.

🔬 Change #3: R&D Becomes Tax-Free

Section 111002 - Research & Development Expensing

What Changed:
Research and development expenses are immediately deductible instead of spread over 5 years.

Strategic Implication:
Product development costs drop 22-37% effectively. Private label development, market research, and product testing become significantly cheaper.

⏰ Your Next 30 Days:
Review all R&D and product development expenses since January 20th for immediate deductions. Accelerate remaining 2025 product development projects. Test new products with immediate tax relief instead of waiting 5 years for full deductions.

🏢 Change #4: Pass-Through Rates Locked In

Sections 110001 & 110201 - Individual Rates & QBI Deduction

What Changed:
Individual tax rates and the 20% QBI deduction are now permanent.

Strategic Implication:
Long-term tax planning certainty. LLCs, S-Corps, and sole proprietors can plan around stable tax rates. No more sunset provisions creating planning uncertainty.

⏰ Your Next 30 Days:
Review your business structure. If you've been considering entity changes, the permanent rate structure creates planning certainty for the first time since 2017.

🚢 Change #5: Import Economics Shift

Section 401001 - De Minimis Reform

What Changed:
The $800 de minimis exemption for commercial shipments ends July 2027.

Strategic Implication:
Small-package imports from China will face full customs processing and duties. This fundamentally changes sourcing economics for packages under $800.

⏰ Your Next 30 Days:
Map your current sourcing patterns. Identify products shipped in small packages. You have 18 months to restructure supply chains before this hits.

🎯 The Strategic Framework

⚡ Immediate Action (Next 30 Days):

• Audit all purchases since January 20th for retroactive write-offs

• Convert remaining 2025 subscriptions to annual licenses

• Review R&D expenses since January for immediate deductions

📋 Strategic Planning (Rest of 2025):

• Maximize remaining equipment purchases before year-end

• Accelerate product development projects

• Optimize business structure for permanent tax rates

🚀 Competitive Advantage Window:

Most sellers don't know about the retroactive benefits yet. Strategic scalers who act now can reclaim thousands in 2025 tax savings and plan the rest of the year strategically.

💡 What This Means for Your Business

📈 $50K+ monthly revenue: These changes likely save you $15K-50K+ annually in taxes while improving your competitive position.

🎯 Scaling toward $100K+ monthly: The equipment and R&D provisions can fund growth that would otherwise require outside capital.

🏆 Planning an exit: The permanent tax rates and estate planning changes reshape succession strategies.

➡️ Forward this to any e-commerce seller who needs to understand
these changes.