The 2026 One Big Beautiful Bill Act: What CFOs Need to Know About 2026 Tax Changes

February 16, 2026

By: Kevin Gehrmann

Partner, Tax

Key Takeaways

Charitable giving just got more expensive: New 0.5% AGI floor means smaller donations won’t reduce your tax bill—plan larger, strategic gifts instead
Estate planning window opens: $15 million per person exemption ($30 million per couple) creates immediate wealth transfer opportunities before potential future rollbacks
Business investment accelerates: 100% bonus depreciation returns for post-January 19, 2025 investments—time capital expenditures accordingly
Bottom Line: OBBBA represents the most significant tax code revision since 2017, requiring immediate strategy adjustments for businesses and high-net-worth individuals.

Congress just passed the largest tax legislation package since the Tax Cuts and Jobs Act, and it’s not subtle. The One Big Beautiful Bill Act introduces changes that will fundamentally alter how businesses plan capital investments, how families approach charitable giving, and how estates structure wealth transfers. CFOs and business owners who treat this as another routine tax update are making a costly mistake.

The Charitable Deduction Calculus Changed Overnight

The new 0.5% AGI threshold on itemized charitable contributions means your $500 donation to the local food bank might not reduce your taxable income anymore. For a family earning $200,000, the first $1,000 of charitable giving effectively disappears for tax purposes.

The silver lining: standard deduction filers can now claim up to $1,000 ($2,000 married) as an above-the-line deduction. Translation? Small donors who don’t itemize finally get a tax break, while larger donors need to bundle contributions into strategic, higher-dollar gifts to clear the new threshold.

Smart move: Donor-advised funds just became more attractive. Contribute a larger amount in one year to exceed the AGI floor, then distribute grants over multiple years.

Estate Planning’s Brief Golden Age

The $15 million per person exemption ($30 million per couple) represents a dramatic expansion from previous levels, indexed for inflation. But here’s the catch: this window won’t stay open forever.

Historical precedent suggests these exemptions face political pressure. Families with significant assets need to act now, not later. The strategy isn’t complicated—it’s about timing. Transferring assets today locks in current valuations and exemption levels before potential legislative reversals.

Real estate holdings, business interests, and concentrated stock positions should be evaluated immediately. The cost of waiting could be measured in millions if exemptions contract or valuations increase.

Business Investment Gets Turbocharged

100% bonus depreciation returns for investments made after January 19, 2025. That’s not a typo—it’s retroactive to early 2025, meaning businesses that already made capital expenditures this year can claim full expensing.

Section 179 limits also increased, giving small and mid-sized businesses more flexibility in deducting equipment purchases. The message from Washington is clear: invest in your operations now.

Finance teams should revisit 2025 capital plans immediately. That manufacturing equipment upgrade or technology infrastructure project just became significantly more tax-efficient. The ROI calculation changed the moment this bill passed.

The Real Estate Wrinkle Nobody Saw Coming

Section 460(e) completed contract rules now include condominiums, fundamentally changing how builders account for deposits and revenue recognition. This isn’t a minor technical adjustment—it’s a structural shift in real estate development economics.

Developers who previously recognized income on a percentage-of-completion basis may now defer recognition until project completion. The cash flow implications vary by project structure, but the accounting complexity just increased substantially.

The AMT Trap Reopens

Alternative Minimum Tax thresholds reset to lower levels, expanding the universe of taxpayers potentially subject to AMT calculations. High-income earners in states with significant state and local tax burdens need to model their exposure immediately.

The SALT deduction landscape also shifts, though the exact contours remain subject to regulatory guidance. What’s certain: taxpayers who thought they’d escaped AMT considerations may need to recalculate.

Dependent Care Gets More Realistic

The increase from $5,000 to $7,500 in annual dependent care benefits, combined with maximum credit rates rising to 50%, acknowledges the actual cost of childcare in 2026. For dual-income families, this represents meaningful tax relief.

Employers offering dependent care FSAs should communicate the increased limits immediately. Employees need to adjust their withholding elections to capture the full benefit.

Immigration Compliance Costs Rise

New OBBBA-mandated immigration fees and increased worksite enforcement mean HR departments face higher administrative burdens. Companies employing foreign nationals should budget for increased compliance costs and longer processing times.

What Smart CFOs Do Next

First, model your specific tax exposure under the new rules. Generic advice doesn’t work—your capital structure, charitable giving patterns, and estate planning needs are unique.

Second, accelerate capital investment decisions if equipment purchases make strategic sense. The 100% bonus depreciation window won’t last forever.

Third, revisit your estate plan immediately if your net worth approaches the exemption thresholds. The political winds shift quickly in Washington.

The One Big Beautiful Bill Act isn’t just another tax bill—it’s a fundamental restructuring of business and personal tax strategy. The winners will be those who act quickly and strategically. The losers will be those who wait for “more clarity” that never comes.

Ready to optimize your tax strategy under the new OBBBA rules? Wiss’s tax advisory team specializes in translating complex legislation into actionable business strategy. Let’s talk about what these changes mean for your specific situation.