Aldrich Uncertainty Report

BUSINESS INSIGHTS + TECHNOLOGY

TAX STRATEGY

How confident are you in your team’s ability to identify and implement the right technological advancements to stay competitive in your industry?

How would you rate your understanding of the impact of the One Big Beautiful Bill will have on your company’s financial planning or operations? No Understanding Deep Understanding All West

Confident

Somewhat Confident

Not Confident

46%

38%

15%

California

Mountain West

31%

56%

13%

32%

48%

15%

30%

55%

15%

Oregon

37%

48%

15%

All West

Stability, Strategy, and Savings: What Private Company Leaders Need to Know About the New Tax Law

Which of the following best describes your current approach to adopting new technologies such as digital tools, automation, AI, etc.?

Pass-Through Deduction Made Permanent—with Expanded Access: Section 199A, which allows a 20% deduction on qualified business income (QBI) for pass-through entities, is now permanent. The new law also expands phase-in ranges for specified service trades or businesses (SSTBs), making the deduction more broadly available to high-income owners in industries like consulting, healthcare, and financial services. Incentives for Small Manufacturers and Domestic Production: The OBBBA introduces targeted benefits for domestic production including increased expensing thresholds for machinery and tools, streamlined deductions for small manufacturers and additional depreciation options for property used in domestic production. Insights Not Uncertainty OBBBA brings a wide range of updates to the tax code that could bring significant impacts and opportunities to businesses and their owners. To help leaders navigate these developments, visit our series of practical checklists designed to highlight key considerations and support informed strategic planning by scanning the QR code below.

With the signing of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, the federal tax landscape has shifted meaningfully for privately held businesses. For founders, owners, and executives of private companies, this landmark legislation offers permanence where there was once uncertainty—and strategic opportunities across the board. This is not just about tax rates—it’s about planning power and decision making. With permanent full expensing, restored R&D deductions, enhanced pass-through flexibility, and targeted domestic manufacturing incentives, the OBBBA creates new momentum for reinvestment, ownership transitions, Permanently Enhanced: The new law makes 100% bonus depreciation permanent, eliminating concerns about phasing timelines Domestic R&D Expensing Fully Restored: Under Section 174A, domestic research and development costs are now fully deductible in the year incurred. Businesses may also accelerate deductions for some previously capitalized amounts. Plan Around SALT Deduction Limits: The State and Local Tax (SALT) deduction temporarily increases to $40,000 through 2029, then reverts to $10,000 in 2030. A phase-down applies for taxpayers with modified adjusted gross income (MAGI) over $500,000. and strategic growth. Key Provisions Full Expensing and Interest Deductions:

California

Mountain West

Oregon

All West

35%

25%

24%

KEY

10%

Early Adopter: Adopt early once tech shows clear competitive advantage. Fast Follower: Implement proven tech after peer success is demonstrated. Late Adopter/Skeptic: Stick with current systems unless change is absolutely required. Pragmatic Adopter: Adopt when industry norms or customer needs demand it.

69%

50%

44%

23%

38%

35%

29%

Note: One Big Beautiful Bill Act (OBBBA) content is subject to change as future regulations and official guidance become available. This article does not constitute tax advice and should not be relied upon when making tax decisions or taking tax positions. Readers are encouraged to consult with a qualified tax professional for advice specific to their situation.

Aldrich Uncertainty Report | Q4 2025

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