Last week, the Internal Revenue Service released the 2025 adjustments to more than 60 federal tax provisions that will impact taxpayers for 2025 tax obligations. These adjustments represent an annual update to federal tax brackets intended to prevent inflation from pushing people into higher income tax brackets and/or reduce the value they receive from credits and deductions.

This year’s average adjustments will increase most federal tax brackets by approximately 2.8%. The adjustments affect marginal rate brackets, alternative minimum tax exemption amounts, capital gains brackets and estate tax credits. NAIOP members should pay close attention to the increases for section 179D, the Energy Efficient Commercial Buildings Deduction, and section 199A, Qualified Business Income.