The Business Journal: 4th Quarter 2025

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Federalupdate CongressExtends2017TaxCutswithNewLegislation

CongresshaspassedHR1 widelyreferredtoasthe“BigBeautifulBill” whichextendsmanyofthe taxcutsfirstenactedunderthe2017TaxCutsandJobsAct(TCJA).SignedintolawbyPresidentTrumpon July 4, 2025, this legislation is designed to provide long-term tax certainty for both individuals and businessesbymakingkeyTCJAprovisionspermanent,whilealsointroducingafewnewmeasuresthattake effectstartinginthe2025taxyear

ImpactonBusinesses

Businesseswillseeacontinuationofthe20%QualifiedBusinessIncome(QBI)deductionforpass-through entities,whichhasbeenmadepermanentunderH.R.1.Bonusdepreciation allowingcompaniesto immediatelywriteoffthecostofqualifiedequipment hasalsobeenextendedindefinitelyforproperty placedinserviceafterJanuary19,2025,givingbusinessesmoreflexibilitywheninvestinginnewassets.The Section179expensinglimitisraisedto$2.5million,withahigherphase-outthreshold,andresearchand developmentcostscanonceagainbefullydeductedintheyeartheyareincurred.

ForIndividualTaxpayers

Forindividualtaxpayers,thebillpermanentlylocksintheTCJA’slowerincometaxbrackets,whichrange from10%to37%.Thestandarddeductionremainselevatedandwillcontinuetobeindexedforinflation, withamountssetatapproximately$15,750forsinglefilers,$23,625forheadofhousehold,and$31,500for jointfilersin2025.Thepopularchildtaxcreditisalsoslightlyincreasedto$2,200perqualifyingchild,with aportionnowrefundableupto$1,700(indexedforinflation),andincomethresholdsunchangedat$200,000 forsinglefilersand$400,000formarriedcouples.The"OtherDependentCredit"hasalsobeenmade permanent Anew,temporaryannualdeductionof$6,000(from2025through2028)isalsoavailablefor taxpayersaged65orolder,subjecttoincomephase-outs.

HomeownersandState&LocalTaxes(SALT)

The$10,000SALTdeductioncap,firstimplementedundertheTCJA,istemporarilyincreasedtoroughly $40,000forjointfilers(withatieredamountforsinglefilers)from2025through2029.Thisincreasedcapis subjecttoaphase-downforModifiedAdjustedGrossIncome(MAGI)above$500,000forjointfilers(and $250,000formarriedfilingseparately)beforerevertingbacktothe$10,000limitin2030 Themortgage interest deduction cap of $750,000 in new home debt is now permanently set, providing clarity for homebuyersandrealestateinvestors Additionally,mortgageinsurancepremiums(PMI)associatedwith acquisitiondebtmaynowbetreatedasdeductiblemortgageinterest.

hanoverareachamberofcommerce 4

NewDeductionsforWorkers

Inadditiontoextendingexistingprovisions,H.R.1introducesnewdeductionsaimedatworkers,effectivefor taxyears2025through2028 Foralimitedtime,taxpayerscanclaimabove-the-linedeductionsforcertain typesofincome,suchasupto$25,000inqualifiedtipincomeandupto$12,500($25,000forjointfilers)in qualifiedovertimepay.Thebillalsocreatesatemporarydeductionforinterestpaidonpassengervehicleloans, addingnewopportunitiesformiddle-incomehouseholdstoreducetheirtaxableincome

LookingAhead

Forbusinessownersandindividualsalike,the“BigBeautifulBill”isasignificantextensionofpoliciesthat weresettoexpireundertheoriginalTCJAframework.Whilesomeprovisionsaretemporaryandwillrequire futurecongressionalaction,themajorityofchangesarenowpermanent,offeringgreaterstabilityfortax planningintheyearsahead TheChamberencouragesallofourmemberstoconsultwithaqualifiedtax professionaltounderstandhowthesechangesspecificallyimpacttheirfinancialsituation.

TrackingTariffs:Whatbusinessesneedtoknow

SinceAugust,theTrumpAdministrationhasimposedtariffsoncertainmajorimportedgoods,creatingthe highesttariffspikesincetheGreatDepression ThisdecisionhasraisedconcernsamongmanyAmericans priceincreasesonimportshaveimpactednotonlybusinessowners,butalsogeneralconsumers.Whether you’repinchingpenniesorsimplytryingtostayinformedasyoubuildyourbudget,belowisthemostrecent tariffinformationasofSeptember2025:

Deminimisexemptionsuspended

AsofAugust29 ,thedeminimisexemption,whichallowedlow-value(under$800)shipmentstoenterthe U.S.duty-free,wassuspendedforimportsfromallcountries.ImportsfromChinaandHongKongwerethe firsttoexperiencethepriceincreaseinMay2025.Now,consumerspurchasingfromanyforeignsellerare experiencingmoreexpensivecosts.Despitethesechanges,exceptionsstillexist.Lettersandpersonalgifts valuedunder$100arestillexemptfromthehigherfees

InthefaceofthesechangesAmericansaremakingdecisionstoadjusttothesenewrules.Businesseshave begunevaluatingwhataspectsoftheproductionprocessinvolveimporting(parts,materials,fullproducts)and fromthere,determiningalternativewaystospend ManyareinvestinginamarginallymoreexpensiveUSbasedproductandperhapscuttingcostsinotheraspectsof theirbudgets,suchasmarketingorputting expansionplansonhold.

Reciprocaltariffs

OnApril5,2025,Abaseline10%tariffwentintoeffectforimportsfromnearlyallcountriesHigher,countryspecificreciprocaltariffsbeganonAugust7fortradingpartnerswithwhichtheU.S.hasatradedeficit, followinganegotiationperiod.

Parts-andmaterials-specifictariffupdates

Auto&AutoPartsTariffs

A25%tariffonimportedautomobilesandautopartstookeffectinAprilandMay2025,respectively,based onaSection232nationalsecurityfinding

CopperTariffs

A50%tariffwasplacedonglobalimportsofsemi-finishedcopperproducts,effectiveAugust1,2025

Steel&AluminumTariffs

Tariffswereexpandedandincreasedto50%formostcountries,effectiveJune4,2025.Importsfromthe UnitedKingdomwereexemptedfromtheincrease.

MovingForward

Fromsmallbusinessestoentirestates,challengeshavebeenmadetotheimpositionofthesetariffs.TheTrump administrationwillpresenttheiroralargumentstotheSupremeCourtonNovember5 ,withthegoalof maintainingthesenewregulations.AsAmericanswaitforthefinalruling,itisvitalthatbudgetsaremodified tobufferthefinancialimpactofthechanges.

Pennsylvaniaupdate

p g g

Transitaregrapplingwithbudgetshortfalls,leading toservicecutsandfarehikes.

impactonmajortransitagencies

SEPTA is dealing with a $213 million deficit, prompting the agency to

implementservicereductionsandwarnoffurthercutswithoutadditionalfunding.Thesituationhasledto concernsabouttheimpactondailycommutersandthebroadercommunity.

Similarly,PittsburghRegionalTransitisfacingapotential35%reductioninserviceanda9%fareincreasedue to financial constraints The agency has requested to redirect nearly $107 million from the Public TransportationTrustFundtocoveroperationalexpensesandavoidthesecuts.

BroaderImplications

Theongoingbudgetdeadlockisaffectingnotonlymajortransitsystemsbutalsosmalleragenciesacrossthe state.Withrecurringstatefundingoffthetable,thesesmallersystemsarepreparingforservicecuts,farehikes, andcanceledexpansions,leadingtouncertaintyformanycommunities

StayingonTrack

OnSeptember8,GovernorShapirotookanimportantsteptoprovidetemporaryreliefbyapprovingSEPTA’s useofupto$394millioninfuturecapitalfundstomaintaincurrentservicelevelsandpreventfurthercuts Whilethismoveoffersashort-termlifelineforPhiladelphia’stransitsystem,itisnotalong-termsolution.The movebuystimetokeepbusesandtrainsrunning,yetthedeeperissueremains:Pennsylvania’stransitsystems can’tthriveontemporaryfixes.Realinvestmentandlong-termfundingreformaretheonlywaystoensure reliablepublictransportationforthecommunitiesthatdependonit

A FRESH LOOK AT YOUR FINANCIAL FUTURE

Scheduleacomplimentary,endofyearsecondopinionwith financialadvisortysonnoelofrigglewealthgroup.

Astheyearcomestoaclose,it’stheperfecttimetoreviewyourfinanialplanandensureyou’reontrackforthe goalsthatmattermost RiggleWealthGroupcanhelp Withover20yearsofexperience,TysonNoelhelpsindividuals andsmallbusinessownersbuildclarityandconfidencearound investment strategies, retirement income planning, and wealth protection.

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A:Ibelievefinancialplanningshouldbringclarityandconfidence not confusionMygoalistohelpindividualsandsmallbusiness ownersbuildaplanthattrulysupportstheirgoals,whetherthat meanspreparingforretirement,growinginvestments,orprotecting whatthey’veworkedhardtoachieve.

Q:Whatmakesthistimeofyearagoodtimeforafinancialcheckin?

A:Theendoftheyearisanaturaltimetopause,reflect,andmake sureyourfinancialplanstillfitsyourlifeMarketschangeandsodo priorities.Asecondopinioncanrevealopportunitiesyoumightbe missingorsimplyconfirmthatyou’reontherightpath.

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county/localupdate

property taxes from these large facilities could help support schools and local services. Businesses like restaurants,contractors,andtruckingfirmsmayalsosee moreactivityasdemandrises.Communitycollegesand trainingprogramscouldstepintoprepareresidentsfor ongoingmaintenanceandtechnicalroles,butthereare also challenges that affect everyday life Data centers consume massive amounts of electricity and water, putting pressure on local utilities York and Adams Countiesarefacingchallengeswithenergyavailabilityas demandoutpacesthe capacityof theiragingelectric grid. Residents have experienced outages linked to substation fires, extreme weather, and older infrastructure that can’t always handle peak loads.Ruralareas,inparticular,oftenseelongerrestorationtimesandweakerservicereliability. Utilitiesareworkingtoaddresstheseissuesthroughgridmodernizationprojects,includingreplacingold copperwireswithhigher-capacitylines,installingsmartequipmenttoisolatefaultsfaster,andbuildingnew substationsliketheEastGermantownprojectinAdamsCounty,slatedforcompletionin2026.Theseupgrades areaimedatstrengtheningreliabilityforthousandsofcustomersandpreparingtheregionforfuturegrowth Astheseconversationscontinue,transparencyandplanningwillbecritical.Localgovernmentswillneedto workcloselywithdevelopers,utilities,andresidentstomakesuretheprojectsfitcommunityneeds Ifdone right,YorkandAdamsCountiescouldgainnewopportunitiesinthedigitaleconomywhileprotectingthe resourcesandqualityoflifethatresidentsvaluemost

GovernmentShutdown:WhatItMeansforLocalBusiness

ByAvaKidd

In headlines, the federal government’s shutdown can seem like more of a Washington-DC problem. But for smallercommunitieslikeours,therippleeffectscanbereal especiallyforlocalbusinessesthatrelyonfederal systems, contracts, or consumer demand While essential services like Social Security, law enforcement, and maildeliverycontinue,severalareasof thelocaleconomycouldexperiencestrain:

ConsumerSpending

Furloughedfederalemployeesintheregionmayseedelayedpaychecks,whichcouldreducespendingat restaurants,retailers,andserviceproviders.

SmallBusinessLoans

The Small Business Administration is expected to halt new loan approvals, making it harder for local entrepreneurstoaccesscapitalforexpansionorstart-ups.

FederalContracts

Businessesthatsupplygoodsorservicestofederalagenciesmayfacepausedprojectsordelayedpayments.

Construction&Development

Federalpermittingandgrantreviewscouldstall,slowingdowninfrastructureanddevelopmentprojectsinthe region.

Tourism&HistoricSites

Iffederallystaffedparksorheritagesitesreduceoperations,hotels,shops,andrestaurantstiedtotourismmay seefewervisitors.

Forbusinessownersandcommunityleaders,stayinginformedandsupportingoneanotherwillbekeyto weatheringthechallengesandensuringthatwhenthegovernmentreopens,ourlocaleconomyisreadytomove forwardwithstrength.

REACH THE HANOVER COMMUNITY.

When you advertise with the Hanover Area Chamber of Commerce, you’re not just buying ad space you ’ re building community connections. Our publications and digital platforms reach engaged business owners, residents, and visitors who value supportinglocal.

Whether you’re looking to grow your brand, promote events, or strengthen your reputation, Chamber advertising puts your message where it matters most right in front of decisionmakersandloyalHanoverlocals.

Aboutus

Mission:

The Hanover Area Chamber of Commerce delivers value to its members and advances the interests of the business community.

The Hanover Area Chamber of Commerce is a membership-based organization that prospers through its partnerships with area schools, businesses and organizations. It is through these types of collaborations that the Chamber is able to provide its members with the tools they need to succeed in the Hanover area.

Over 90 percent of the Hanover Chamber’s membership is comprised of small businesses with 25 employees or less More than half of the businesses that join the Chamber do so for the advertising and promotional opportunities; 38 percent join for networking. The Chamber serves these members by providing an array of quality products, programs and services, including health insurance, property and casualty insurance, educational workshops, networking and marketing opportunities, workforce development, and employment screening services.

Business. Community. Commitment.

LetterfromthePresident

Sarah Messer, President of the Hanover Area Chamber of Commerce

It is with great excitement that I introduce the very first issue of The Business Journal, the Hanover Area Chamber of Commerce’s new quarterly publication. Previously, our Chamber Connection newsletters served for many years as an important tool for keeping members informed and engaged.

As our organization and community have grown, so too have the ways we share stories, celebrate achievements, and spotlight the

people who make Hanover thrive. Thank you for being part of this next chapter with us your continued support and engagement are what make our Chamber, and our community, so vibrant.

Sincerely,

HanoverAreaChamberofCommerce

2025-2026BoardofDirectors

CYNTHIASIMPSON

ChairoftheBoard-Utz QualityFoods

TOMALLISON

Allison’sPlumbing, Heating&HVAC

DREWLITTLE

ConewagoValley SchoolDistrict

DR.JOHNSCOLA

HanoverPublicSchool District

SHAUNHOFFMAN

Leonhardt ManufacturingCo Inc.

Staff

ASHLEYHERSHEY

Secretary/TreasurerBrownPlus

JONHARRIS

M&TBank

LONISMITH

HanoverAutoTeam

AUBREYANNEOCHS

WellSpanHealth

BRANDONWINGERT

L2BrandsLLCLeague&Legacy

STACYPITTA

Campbell’sSnacks

SARAHMESSER

PresidentoftheHanoverArea ChamberofCommerce

JACOBTAYLOR

DirectorofMemberand CommunityRelations

HOLLYLAPIDUS

AdministrativeCoordinator

MICHAELKELLY

PastChair-ACNB Bank

ELIZABETHJOHNIDES

EdwardJones

AVAKIDD

MarketingandEventsCoordinator

KELLYMCDONALD

UPMCHanover

DR.JAYBURKHART

SouthWesternSchool District

LegislativeRoundtable

TheHanoverAreaChamberof Commerce's Legislative Roundtables are quarterly events designed to foster direct dialogue between localbusinessleadersandelectedofficials.

NextLegislativeRoundtable: February6th,2026(LocationTBD)

HanoverBoroughBuildingOpening

Hanover Borough officially opened its new PublicAdministrationFacilityat33Frederick Street with a ribbon-cutting ceremony on April23,2025,followedbyguidedtoursand thefirstBoroughCouncilmeetinginitsnew ADA-compliantCouncilChambers.

The$11millionprojectrenovatedtheformer TrueNorth Wellness Services building to include updated administrative offices, community spaces, a commercial-grade kitchen,andmodernAVtechnology.

40YorkSt Suite2|Hanover,PA17331

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