The One Big Beautiful Bill Act (OBBBA) introduces several planning opportunities for businesses with certain provisions taking effect in 2026, including the revival of some previous legislation from the Tax Cuts and Jobs Act (TCJA). While taxpayers may have already incorporated some OBBBA provisions on their 2025 returns, there is still an opportunity to evaluate how these changes can help generate strategies to maximize tax savings for your business this year.

Here is an overview of key business tax provisions every business should consider:

Accelerated bonus depreciation.

One of the most favorable provisions included in the OBBBA was the permanent 100% bonus depreciation for the cost of qualified new and used assets, for property acquired and placed into service after Jan. 19, 2025.

The new law also introduces a 100% deduction for the cost of “qualified production property” (generally, nonresidential real property used in manufacturing) placed into service after July 4, 2025, and before 2031. In addition, the OBBBA increases the Section 179 expensing limit to $2.56 million and the phaseout threshold to $4.09 million (up from $2.5 million and $4 million, respectively, for 2025).

Together, the depreciation changes are expected to encourage capital investments, especially by manufacturing, construction, agriculture and real estate businesses.

Permanent qualified business income (QBI) deduction.

The Section 199A deduction for QBI for owners of pass-through entities (such as partnerships, limited liability companies and S corporations) and sole proprietorships was slated to expire after 2025. The OBBBA makes the QBI deduction permanent, plus expands the deduction limit phase-in ranges for specified services, trades or businesses and other entities subject to the wage and investment limitation.

For 2026 and beyond, instead of the distance from the bottom of the range (the threshold) to the top (the amount at which the limit fully applies) being $50,000, or, for joint filers, $100,000, it’s $75,000, or, for joint filers, $150,000, which will allow larger deductions for some taxpayers.

For 2026, the ranges are $201,750 – $276,750 (up from $197,300 – $247,300 for 2025), double those amounts for married couples filing jointly. The threshold amounts will continue to be annually adjusted for inflation.

Consider the potential impact of the limit phase-ins on your 2026 QBI deduction. There may be steps you can take to make the most of the significantly expanded phase-in ranges.

Reduced threshold for excess business loss limitation.

The deductions for current-year business losses incurred by noncorporate taxpayers generally can offset income from other sources, such as salary, self-employment income, interest, dividends and capital gains, only up to the annual limit. “Excess” losses are carried forward to later tax years and can then be deducted under the net operating loss rules.

The OBBBA makes the limit permanent and reduces the threshold at which the limitation goes into effect. For 2026, the threshold is $256,000 (down from $313,000 for 2025), double that amount for joint filers, and will be adjusted for inflation annually.

If you’ll be affected by this change, consider making changes to your business strategy to avoid generating losses that would be suspended until later years because of the lower excess business loss limitation threshold.

Increased cap on the business interest deduction.

The OBBBA reverts to pre-2022 rules, limiting interest deductions to 30% of earnings before interest, taxes, depreciation and amortization (EBITDA), instead of EBIT, with revised income ordering and foreign-income exclusions clarified. This increases your ability to deduct interest expenses for taxable years beginning in 2025 and beyond now that the calculation of “adjusted taxable income” excludes depreciation, amortization and depletion.

This is great compliment to the new bonus depreciation rules and allows purchased assets to be debt funded.

Note, small businesses are exempt from this limitation in 2025 if their average gross receipts over the past three years do not exceed $31 million. The limitation amount increases to $32 million for 2026 and will be adjusted annually for inflation.

New option for the family and medical leave credit.

The OBBBA permanently extended the employer tax credit for paid family and medical leave, which was scheduled to expire on Dec. 31, 2025. For 2025, the credit amount ranged from 12.5% to 25% of eligible wages paid to qualifying employees for up to 12 weeks of paid leave.

Beginning in 2026, the OBBBA allows employers to claim the credit for the same percentage of insurance premiums paid or incurred during the tax year for active family and medical leave coverage. Note, you can’t claim the credit for both wages and premiums.

If you don’t currently offer paid family and medical leave, consider whether funding it with insurance premiums eligible for the credit would make doing so feasible while helping to achieve other business goals, such as increasing employee retention. If you do offer paid family and medical leave, you’ll need to look at whether claiming the credit for actual wages paid to employees on leave or for insurance premiums will save you more tax.

Elimination of certain clean energy incentives.

The Section 179D deduction for energy-efficient commercial buildings allows owners of new or existing commercial buildings to immediately deduct the cost of certain energy-efficient improvements rather than depreciate them over the 39-year period that typically applies. The

base deduction is calculated using a sliding scale, ranging for 2026 from $0.59 per square foot to $5.94 per square foot, depending on energy savings and whether specific prevailing wage and apprenticeship requirements have been met. The OBBBA eliminates the deduction for property that begins construction after June 30, 2026.

The Section 30C alternative fuel vehicle refueling property credit is for property that stores or dispenses clean-burning fuel or recharges electric vehicles. The credit is worth up to $100,000 per item (each charging port, fuel dispenser or storage property). The OBBBA eliminates the credit for property placed in service after June 30, 2026.

If you’re considering one of these clean energy investments, you may want to act soon so you can be eligible for the associated tax break before it’s eliminated.

Restored full expensing for research and expenditures (R&E).

The OBBBA permanently allows taxpayers to fully expense R&E expenditures paid or incurred in taxable years beginning after Dec. 31, 2024. As a result, companies may once again deduct domestic R&E costs in the year incurred (foreign R& expenditures remain subject to a 15-year amortization requirement). The legislation also provides an option to amortize domestic R&E expenses over five or 10 years, offering additional flexibility for tax planning.

Smaller businesses (revenues less than $31 million based on average annual gross receipts for tax years 2022 – 2024) have a unique opportunity to amend prior-year returns. This allows them to potentially claim significant refunds for R&D costs that were previously capitalized under prior law. To take advantage of these retroactive benefits, amended returns must be filed by July 4, 2026.

Plan Now

The tax code is constantly changing, and the OBBBA continues to bring a lot to unpack. Knowing how these updates affect your business can make a real difference. Contact us to explore key provisions and uncover planning opportunities. We can help you create a strategy to lower your tax burden and keep your cash flow on track.