Top 100 accounting firm Bennett Thrasher has released guidance on the most important tax considerations for businesses filing in 2026, outlining general compliance and planning recommendations as companies navigate major legislative changes introduced under the One Big Beautiful Bill Act.
Several OBBBA provisions affect taxable income reported on 2025 returns filed in 2026, making a thorough review essential to avoid missed savings or compliance issues.
The following are 10 tax priorities and best practices for businesses in 2026, according to Bennett Thrasher:
1. Revisit bonus depreciation and capital investment deductions
What to do: Revisit capital expenditure plans in light of OBBBA’s permanent restoration of 100% bonus depreciation for most tangible property acquired after Jan. 19, 2025. Consider accelerating purchases, using cost segregation studies to maximize qualifying property (especially for mixed-use buildings), and evaluating whether to elect out of bonus depreciation for certain asset classes. A transitional election for 40% bonus depreciation may also apply in the first year after enactment.
2. Confirm how Section 174 R&D costs must be treated
What to do: Identify all qualifying 2025 research and development expenses, including software development and product design, and confirm the correct treatment under current law (amortization versus immediate expensing). Review how R&D costs for tax years 2022-2024 were classified to determine optimal tax treatment on previously unamortized R&D costs.
3. Understand shifts around employee tips and overtime
What to do: Prepare for new federal income tax deductions for qualified tips and overtime pay (effective 2025-2028) by confirming eligible roles and pay types and updating payroll systems. Employers should separately track and report qualified overtime compensation on W-2s or other information returns, and ensure their systems can meet the new 2026 reporting requirements.
4. Review business interest deduction limitations
What to do: Recalculate deductible interest expense under Internal Revenue Code Section 163(j), particularly for businesses carrying significant debt, such as real estate operators. Confirm the treatment of related-party, acquisition, or refinanced debt; evaluate carryforward of disallowed interest; and assess whether future debt restructuring could improve deductibility benefits. Determine the impact of the OBBBA changes to Section 174 expenses on potential interest expense limitations.
5. Reassess pass-through income and qualified business income impacts
What to do: Recompute owner compensation, distributions, and taxable income levels that affect QBI eligibility for S corps, partnerships, and LLCs. Confirm shareholder or partner basis supports losses claimed in 2025, and consider whether structural or compensation changes should be evaluated before the next tax year.
6. Capture available energy-efficiency and sustainability credits
What to do: Identify qualifying 2025 projects that may be eligible for energy-efficiency and clean-energy credits (including sections 179D and 45L). Obtain required engineering studies and certifications before filing, and evaluate whether credits can be transferred, monetized, or carried forward where permitted.
7. Bypass the revised SALT cap by paying state taxes at the entity level
What to do: The OBBBA increased the limit on the individual state and local tax deduction to $40,000 (previously $10,000). Evaluate how to optimally deduct SALT deductions overall and whether electing a pass-through entity tax could reduce federal tax liability by bypassing the SALT cap. Confirm eligibility, timing, and filing requirements by state, and coordinate with owners and advisors before making the election, as PTET impacts cash flow, estimated payments, and owners’ individual tax reporting. Assess whether states enacted any changes related to PTET due to expiring provisions or conformity to the OBBBA.
8. Reassess international tax provisions under the Tax Cuts and Jobs Act and updates made under OBBBA
What to do: Review changes made to international tax provisions (e.g., FDII, Net CFC Tested Income, foreign tax credits, etc.) if your business owns foreign subsidiaries. Determine the impact of such changes on tax reporting for the 2026 tax year.
9. Take advantage of expanded PFML credit benefits
What to do: Confirm paid leave policies meet paid family and medical leave credit requirements following OBBBA’s permanent extension and expansion beginning in 2026. Accurately calculate eligible 2026 leave wages, maintain documentation, and coordinate with other wage-based credits to ensure compliance and maximize benefits on your tax return.
10. Leverage new employer-provided childcare credit benefits
What to do: Evaluate whether offering or expanding childcare benefits could generate meaningful savings under the increased 2026 credit (up to 40%-50%, with higher caps). Explore partnerships with other businesses or third-party providers, and document qualified expenses and eligibility early. Evaluate whether any state-level benefits are available as well.
“This year more than ever, businesses can’t afford to adopt a ‘same as last year’ mentality when it comes to tax filing,” Zack Leder, tax partner at Bennett Thrasher, said in a statement. “Proactive, coordinated planning is what separates companies that simply stay compliant from those that unlock meaningful tax savings.”
Photo illustration credit: Nuthawut Somsuk/iStock
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