Tax

The One Big Beautiful Bill (OBBB) Act was signed into law in early July by President Trump. To date it is the Administration’s landmark legislation which calls for significant changes to tax incentives, credits and deductions available to individuals, families, and businesses. In a prior post, we covered many of the tax provision changes impacting businesses. However, there were several energy tax incentives which were changed including the Energy Efficient Commercial Building Deduction (Section 179d), electric vehicle tax incentives, and the residential clean energy tax credit.

On July 4th, President Trump signed The One Big Beautiful bill (OBBB) into law, which calls for several individual and business tax cuts and changes. Included within the text where many extenders and updates to changes originally introduced in the Tax Cuts and Jobs Act (TCJA) of 2017. While there were dozens of updates and changes the most prominent include an extension of the Section 199a deduction, full expense of R&D expenses, restoration of 100% bonus depreciation, an increase in the SALT deduction, and calls for an expansion of the Employer Provided Child Care Credit.

For business owners weighing options, the way a business is taxed can shape nearly every decision that follows. The C corporation stands apart from other structures in that it pays taxes as a separate legal entity. That single distinction affects everything from how profits are handled to how much flexibility the business has in managing earnings and benefits.

On May 9, 2025, the House Ways and Means Committee released the first details of a new tax bill, followed by a longer summary on May 12. It’s early in the process, and changes are expected, but the proposal offers a look at what Congress may be considering as several key tax provisions from the Tax Cuts and Jobs Act (TCJA) near expiration at the end of this year.

Commercial property owners are always looking for ways to reduce tax liability and increase cash flow. One strategy that is gaining more attention in recent years is the cost segregation study. This approach helps accelerate depreciation and tax deductions into the early years of property ownership.  Despite its technical nature, cost segregation is based on a simple idea. A building is made up of many parts, and not all of the parts age or wear out at the same pace. Because of that, they don’t necessarily need to be depreciated in the same way. When applied correctly, this strategy can lead to significant upfront tax savings.

The last few months have brought economic uncertainty to South Carolina businesses across several industries. This has resulted in companies facing higher costs for materials and supplies, reduced demand, and potential workforce changes. In addition, many have been forced to make strategic adjustments such as developing new supplier relationships. In light of the situation companies are focused on finding new opportunities to reduce costs – including taxes. The good news is tax savings may be possible by taking advantage of state level business tax credits and incentives. South Carolina offers several programs including the Jobs Tax Credit, Research & Development (R&D) Tax Credit, Solar Energy Tax Credit, amongst others.

Earlier this month Georgia Governor Brian Kemp signed two important parcels of legislation into law. The enactment of House Bill (HB) 111 and 112 provides both tax relief and a surplus refund to full and nonresident income tax filers. The first calls for a continued reduction in the state income tax rate from then original 5.75% to 5.19% effective immediately. The second permits surplus tax refunds to be paid to eligible individuals. The maximum refund is $500 per household with smaller amounts determined by filing status.

New tariffs are pushing up the cost of key materials used in construction and real estate development. A 25% tariff on imported steel and aluminum is already in effect, and additional tariffs may take effect in early April. With construction costs already high and supply chains still recovering from past disruptions, these trade policies are introducing more uncertainty into project planning and budgets. For businesses that rely on imported materials, the coming months could bring higher costs, potential delays, and sourcing challenges

The majority of businesses in the United States (about 95%) are structured as pass-through entities. These companies do not pay corporate income tax. Instead, profits and losses “pass through” to owners, who then report the income on individual tax returns. This can be confusing, especially considering how profits flow down to owners. While this structure avoids double taxation, it also means the tax burden is on the individual level, requiring business owners to consider self-employment taxes, payroll, and state tax limitations

The Corporate Transparency Act (CTA) passed in 2021 includes several provisions designed to prevent illegal activities such as money laundering and tax evasion. A key component of the legislation is the requirement for businesses to file Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). The reporting opened January 1, 2024, but has experienced several delays due to ongoing litigation. The culmination has been a delay in the reporting requirement since mid-January.