April 17, 2025
Associate Partner Reynold Cicalese III, CPA, MST was featured in NJBiz with the article titled, “Looming tax law sunset spurs worries in business community.”
Other CPAs are also skeptical. “Federal government trends have been less-than-predictable these days,” noted Ren Cicalese III, associate partner at Alloy Silverstein Accountants and Advisors in Cherry Hill, New Jersey. “I believe there will be some kind of extension of the tax cuts at some point this year but getting there will involve solving many technical hurdles. Tax legislation typically comes from the House, and with a very slim Republican majority, Trump tax cut extension supporters must be unified to advance any legislation.”
That could be a challenge for Republicans in states like New Jersey, which have relatively high property and other taxes, added Cicalese. “Some House Republicans are saying they may not sign off on an extension of the TCJA provisions unless the SALT cap is substantially raised or even eliminated. So, Congress will have a tightrope walk to please everyone. I think we’ll end up with some kind of TCJA extension, but some specific provisions may be watered down.”
The uncertainty is spurring some of his clients to hit “pause” on their machinery and equipment purchasing, he said. “The prospect of losing out on bonus depreciation is definitely a pain point. Some of our manufacturing clients who invested in capital improvements during the first year of the TCJA got a nice break. Consider that a business organized as a ‘C’ Corporation in the flat 21% federal tax bracket, which invested $100,000 in M&E. They saved $21,000 of federal tax liability in the year of acquisition. If they had to wait, say, five years to recapture that, they may do a stutter step — thinking twice about the purchase. Right now, we’re advising many clients to wait a few months before making any significant capital improvements to see how this all shakes out in Congress, if they’re able to do so.”
But some businesses can’t wait that long. “One of our New Jersey-based clients is a small-tools manufacturer,” Cicalese detailed. “The assets that create their tools wear down fairly quickly, so there’s a constant cycle of replacement — they cannot defer their purchases while Congress wrangles over tax bills.”
To read the full article, visit NJBiz.com.
About Alloy Silverstein
Alloy Silverstein is a regional accounting and advisory firm providing quality tax, accounting, auditing, bookkeeping, financial, and outsourcing solutions to the individuals and businesses of the South Jersey community since 1959. With over 50 professionals in Cherry Hill and Hammonton, NJ, Alloy Silverstein’s team of CPAs, business advisors, and payroll specialists work together to help small and medium sized businesses achieve their personal and professional goals. Learn more at AlloySilverstein.com.
