New Tax Law Changes For 2026 Tax Returns: Tax Provisions Part 2

Business Tax Provisions

Permanently restores immediate expensing for domestic research a,nd development (R&D) expenses; small businesses with gross receipts of $31 million or less can retroactively expense R&D back to after December 31, 2021; all other domestic R&D between December 21, 2021 and January 1, 2025 can accelerate remaining deductions over a one- or two-year period.

Permanently reinstates the EBITDA-based limitation on business net interest deductions.

Permanently restores 100 percent bonus depreciation for short-lived investments.

Temporarily provides 100 percent expensing of qualifying structures, with the beginning of construction occurring after January 19, 2025, and before January 19, 2029, and placed in service before January 1, 2031.

Makes the Section 199A pass-through deduction permanent; increases phase-in range of limitation by $50,000 for non-joint returns and $100,000 for joint returns.

Implements a one percent floor on deduction of charitable contributions made by corporations.