Tax planning opportunities do not last forever. As businesses evaluate investments, operations, employee benefits and growth plans for the remainder of the year, several provisions from the One Big Beautiful Bill Act (OBBBA) may create meaningful opportunities to reduce tax liability and strengthen financial results.
One year later, the most important takeaway is not simply what changed. It is how quickly businesses respond. The following areas are worth reviewing now, especially if you are considering capital investments, clean energy projects, facility expansion or updates to employee leave benefits.
Here are four key areas to consider.
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Paid Family and Medical Leave Credit: A Permanent Planning Tool
The employer credit for paid family and medical leave is no longer a temporary incentive. Beginning with 2026 tax years, it is a permanent planning tool that may help employers align employee benefits with tax savings.
Planning opportunities
- Review your written paid leave policy to confirm it includes the required pay replacement level and employee protections.
- Compare the available calculation methods. Employers may generally calculate the credit based on qualifying paid leave wages or, if a paid leave insurance policy is in place, based on eligible insurance premiums.
- Evaluate payroll coding and documentation. Payroll systems should clearly track only the leave types that qualify for the credit.
- Coordinate with state or local paid leave programs. Required leave may help meet program requirements, but it generally cannot be used to calculate the federal credit amount.
- Confirm the income tax impact. The wage or premium expense deductible for federal income tax purposes is reduced by the amount of the credit.
Bottom line: This is no longer a short-term incentive. Employers should review their 2026 policies, payroll records, insurance arrangements and documentation now to determine whether they are positioned to claim and support the credit.
For more information: For more detail on the 2026 rules and what employers should review, see the companion article: Paid Family and Medical Leave Credit Is Now Permanent: What Employers Should Know.
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Energy Credits: Evaluate Timing, Eligibility and Compliance
Energy-related credits and incentives remain available, but the rules have become more time-sensitive and more complex. Some projects now face accelerated deadlines, while others require closer review of ownership, supply chain and compliance requirements.
Planning opportunities
- Evaluate clean energy projects early. Wind and solar projects generally must begin construction before July 4, 2026, or be placed in service by December 31, 2027, to qualify for certain credits.
- Confirm what it means to be placed in service. Projects relying on the 2027 deadline generally need to be fully operational, including permits, approvals, interconnection agreements and other required authorizations.
- Review ownership, financing and supply chain relationships. New foreign entity restrictions may affect eligibility for projects that begin construction after December 31, 2025.
- Document compliance from the start. Prevailing wage and apprenticeship requirements, domestic content bonuses, energy community bonuses and other incentive rules can materially affect the available benefit.
- Do not overlook other technologies. Geothermal and energy storage incentives were generally left intact and may still present planning opportunities.
Bottom line: If energy-related investments are on your radar, now is the time to confirm eligibility, model the potential benefit and coordinate project timelines before opportunities change.
For more information: For a deeper look at the clean energy credit rules, including wind and solar deadlines, foreign entity restrictions and available bonus credits, see the companion article: Clean Energy Tax Credits Remain Available — But New Rules Demand Planning.
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Qualified Production Property (QPP): A Major Opportunity for Certain Industries
One of the most impactful updates is the new ability to fully expense certain production-related real property.
What Qualifies
- Nonresidential real property used in:
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- Manufacturing
- Production
- Refining
Example: On a $5 million manufacturing facility, 80% of which is used for production, this new benefit under OBBB could increase first-year deductions from $128,000 to $4.025 million, potentially saving up to $1.15 million in federal taxes.
Planning opportunities
- Evaluate projects and model available incentives early: If you’re building, acquiring or expanding a facility, QPP may provide a significant upfront deduction. It should be analyzed alongside other cost recovery opportunities, such as bonus depreciation and Section 179 expensing, as QPP may complement, or provide a favorable alternative to, other accelerated depreciation strategies.
- Pay close attention to timing: Qualification depends on when construction begins and when the property is placed in service. Businesses considering future facility investments should evaluate projects now, as this opportunity is not permanent. Under the current rules, this benefit is available for property that begins construction after January 19, 2025, and before 2029 and places such property into service by December 31, 2030. Early planning can help ensure projects meet eligibility requirements.
- Consider leased property arrangements: Not all leased facilities qualify, making it important to review ownership and leasing arrangements in the planning process.
Bottom line: For the right business, QPP could be one of the most valuable tax-saving provisions available, but it requires planning and careful documentation.
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Section 179 and Bonus Depreciation: Maximize First-Year Deductions
Depreciation rules remain one of the most powerful tools available for business tax planning, especially for companies planning equipment, technology or other capital purchases before year-end.
Planning opportunities
- Evaluate planned equipment and capital purchases before year-end. Assets generally must be purchased and placed in service before year-end to qualify for a current-year deduction.
- Consider the increased Section 179 limits. For 2026, businesses can expense up to $2.56 million of qualifying purchases under Section 179, with the deduction beginning to phase out when total qualifying asset purchases exceed $4.09 million.
- Use bonus depreciation strategically. 100% bonus depreciation on qualifying assets can be valuable when capital expenditures exceed Section 179 limits or when a business wants to maximize first-year deductions.
- Coordinate deductions with the broader tax picture, including state conformity rules. Accelerated deductions can reduce taxable income and improve cash flow, but they should be modeled alongside other tax planning considerations.
Bottom line: Smart timing of capital investments can create immediate tax savings, but the strategy should align with your full financial picture and operational goals.
Final Takeaway: Timing Drives Results
Across these areas, the opportunities come down to timing decisions, coordination and proactive planning. Businesses that wait until year-end may have fewer options, especially when eligibility depends on project start dates, placed-in-service deadlines, payroll documentation or policy updates.
Let’s Talk Strategy
If you are considering investments, operational changes, clean energy projects or benefit updates this year, now is the time to evaluate the tax impact. Connect with your advisor to identify opportunities specific to your business and build a plan that works for you.