The One, Big, Beautiful Bill Act (OBBBA) introduces several tax changes that materially affect manufacturers — particularly for capital-intensive companies looking to finalize tax and capital planning strategies for 2026 and beyond. This quick reference checklist highlights the top areas to review and consider.
Depreciation and amortization addbacks are restored to the adjusted taxable income (ATI) calculation, increasing the amount of interest that can be deducted.
Planning items:
- Check for significant repairs and maintenance expenses that can be claimed as depreciation to maximize your Section 163(j) deduction.
- Model the impact of depreciation on ATI for interest limitation calculations.
- Ensure 100% bonus depreciation is evaluated for the interaction with the limitation.
- Check state conformity since some states may continue applying the Tax Cuts and Jobs Act-era rules.
