On July 4, 2025, several key priorities championed by PRINTING United Alliance were signed into law, marking a significant legislative win for American businesses. For the printing industry—an industry powered by thousands of small and family-owned businesses—the law brings long-overdue tax certainty and targeted relief that supports investment, workforce growth, and innovation.
Several key provisions in the new law are especially relevant to print and packaging companies. Below are major reforms that will directly benefit printing businesses of all sizes, but especially those operating as small businesses or pass-through entities.
Permanent 20% Deduction for Qualified Business Income (Section 199A)
Many printers are structured as S corporations, partnerships, or sole proprietorships, rather than traditional C corporations. Under the 2017 Tax Cuts and Jobs Act (TCJA), these businesses became eligible for a 20% deduction on qualified business income (QBI), helping to level the playing field with larger, incorporated competitors. That deduction was set to expire at the end of 2025.
The new law makes the 20% QBI deduction permanent and expands eligibility by easing phase-in limitations. It also creates a new $400 minimum deduction (indexed for inflation), offering meaningful tax savings for qualifying printers with lower QBI. These changes ensure that print businesses—regardless of size—can plan ahead with confidence, reinvest in equipment, and hire new workers.
Maintains the Individual Tax Rate
Under the new tax law, the top individual tax rate will remain at 37% percent, down from a scheduled increase to 39.6%. This is relevant for businesses structured as pass-through companies, where income is taxed at the individual level.
Full Expensing of Research and Experimental (R&E) Expenses (Section 174A)
Modern print operations often invest heavily in process improvements, workflow automation, and new customer-facing technologies—all of which may qualify as research and experimental (R&E) expenses. Since 2022, companies have been forced to amortize these costs over five years instead of fully deducting them in the year incurred, creating cash flow challenges for many printers.
The new law permanently restores full and immediate expensing for domestic R&E expenditures starting in 2025. For printers with average annual gross receipts of $31 million or less, the provision applies retroactively to 2022—allowing them to recover tax dollars previously paid on investments that fuel operational efficiency and customer value.
Expanded Expensing for Equipment and Capital Investments (Section 179)
The printing industry is capital intensive. Whether it’s investing in digital presses, bindery equipment, wide-format printers, or packaging automation, having access to immediate tax write-offs is essential. Under prior law, businesses could expense up to $1 million in equipment purchases under Section 179 of the tax code.
Now, that limit increases to $2.5 million, with a new phase-out threshold starting at $4 million, both indexed for inflation. For printers, this means faster return on investment when upgrading production lines, expanding facilities, or modernizing technology—all without being burdened by multi-year depreciation schedules.
100% Bonus Depreciation for Capital Investments (Section 168.k)
In addition to Section 179, bonus depreciation under Section 168(k) allows for 100% expensing of capital equipment in the year the purchase is made. The new law makes the full expensing for eligible investments permanent. For print businesses, this means accelerated cost recovery when upgrading facilities or installing new machinery—supporting stronger margins, domestic production, and long-term competitiveness.
Also, there is a new benefit that introduces a temporary 100% bonus depreciation allowance for eligible "qualified production property," including certain manufacturing and production facilities. This applies to construction that begins between January 20, 2025 through December 31, 2028, and is placed in service before January 1, 2031.
Interest Deduction Based on EBITDA (Section 163.j)
The final piece of the investment incentive package comes from a favorable change to how the business interest deduction is calculated under Section 163(j). Prior law limited deductions based on earnings before interest and taxes (EBIT), but now the formula is based on earnings before interest, taxes, depreciation, and amortization (EBITDA).
This broader definition increases the deductible amount of interest paid on loans, making it easier for printers to finance new equipment, expand operations, and manage capital investments more affordably. For an industry reliant on large, upfront capital purchases, this provision is a practical boost that improves cash flow and encourages growth.
Improved Capital Gains Exclusion for Investment in Print Startups (Section 1202)
Access to capital is essential for launching new ventures and innovating within the print and packaging sector. The Qualified Small Business Stock (QSBS) exclusion, a tax benefit for investors who support high-potential small businesses, has been strengthened under the new law.
The law increases the per-issuer exclusion cap from $10 million to $15 million and raises the asset ceiling from $50 million to $75 million, making more print startups eligible. These updates could help attract new investment in emerging sectors of the printing industry.
What It Means for the Printing Industry
Together, these tax changes create a more favorable business environment for printers to grow and compete. From permanent expensing and expanded interest deductions to innovation incentives, the tax law delivers policy wins that reflect the real-world needs of print and packaging businesses.
Independent analysis reinforces the potential impact of these reforms. According to the nonpartisan Tax Foundation, the new tax law is projected to increase long-run GDP by 1.2%—a sign that the provisions are likely to boost investment and productivity across the economy. However, the analysis also estimates the legislation could increase the federal deficit by $3 trillion over the next decade, even when accounting for expected spending reductions and economic growth. To explore the full economic implications of the budget reconciliation bill, view the Tax Foundation’s analysis here.
PRINTING United Alliance applauds Congress for enacting these critical tax reforms—and will continue advocating for policies that position the printing industry for long-term success.
In this article, Stephanie Buka, Government Affairs Manager, PRINTING United Alliance, reports on the favorable tax provisions in the reconciliation bill. More information can be found at Business Excellence-Legislation or reach out to Steph should you have additional questions specific to how these issues may affect your business: sbuka@printing.org.
To become a member of the Alliance and learn more about how our subject matter experts can assist your company with services and resources such as those mentioned in this article, please contact the Alliance membership team: 888-385-3588 / membership@printing.org.