OBBBA Is the Real Tax Law — Not Rumors
The One Big Beautiful Bill Act was passed in 2025 and is now shaping the business tax landscape in 2026. It’s not a proposal, it’s law. Among the many provisions that startups and founders should pay attention to, a few stand out:
Immediate expense of R&D and other investments: OBBBA restored 100% expense of certain research and experimentation costs, reversing recent rules that forced amortization. That’s a win for founders investing heavily in product and engineering.
Permanent extension of prior tax cuts: Some individual and business tax rates from previous legislation were extended under OBBBA, creating more predictability for financial planning.
These are examples of actual law that is already changing how startups think about deductions, credits, and planning.
What’s Still Proposed or Evolving
Not everything you read about “Trump tax changes” is law. A lot of discussion, especially in media and analyst commentary, centers on proposed ideas or politics rather than enacted policy.
For example, various “Trump tax plan ideas” have been floating around in public debate, such as changes to how Social Security or tipped wages are taxed, but many of these remain proposals, not law.
Also, some tax form changes (like anticipated new W-2 reporting codes) are being talked about in industry reporting, but they aren’t sweeping business game-changers for all founders.
In other words: focus your business planning on what’s already enacted and guidance from the IRS and Treasury as it’s published.
Tariffs Are Real — But Their Impact Is Not Always Direct
Tariff policy under the current administration is one of the most talked-about initiatives and is actually being implemented in many areas. The U.S. has announced or reimposed tariffs on goods from major trading partners, including Canada, Mexico and China, and analysts project tariff revenue will remain a major component of federal receipts in 2026.
However, tariffs aren’t a tax policy for founders in the same way an R&D credit is. They affect the cost of goods, supply chains, and pricing, especially if your startup depends on imported hardware or components, but they do not directly change corporate tax rates or deductions.
Tariff shifts can influence how you source materials and structure supply, or how pricing changes ripple through your unit economics and margins. That’s why founders with international supply chains or hardware products need to monitor tariffs, but they are not a substitute for core corporate tax policy changes.
How CFOs and Finance Leaders Are Responding
According to recent finance industry outlooks, nearly half of CFOs expect to benefit from the OBBBA’s enacted provisions, especially around investment incentives like full expensing and favorable treatment of research costs.
At the same time, many finance leaders are still navigating uncertainty around trade policy and evolving compliance requirements. The combination of tariff volatility and new tax law provisions is causing finance teams to take a more disciplined approach to forecasting and planning than in recent years.
For founders, that means staying engaged with your finance team, tax advisors, and strategic planners, this isn’t something you can safely ignore.
Action Items for Q1 2026
If you haven’t already, here are the things to prioritize:
- Update your tax planning to incorporate OBBBA provisions like immediate R&D expensing and full capex deductions.
- Review deductions and credits that may now be available for your company’s investments.
- Assess your supply chain risks in light of ongoing tariffs and geopolitical trade shifts.
- Work with your accountant early — 2026 return preparation shouldn’t wait until tax season.
Frequently
asked
questions
What tax changes are actually law for 2026?
The main enacted changes are from the One Big Beautiful Bill Act, including restoration of immediate spending for R&D and other investment incentives. Other rules often discussed like broad tax cuts beyond existing law, may still be proposals.
Do tariffs count as a tax change for my startup?
Tariffs are taxes on imports, not business income taxes. They don’t change your federal corporate tax liability directly, but they can affect your costs and supply chain economics if you rely on imported components.
Will startups pay less tax now under the new administration?
It depends on your situation. Provisions like full expensing of certain expenditures can reduce taxable income, but broad tax rate changes for all companies haven’t been enacted beyond OBBBA’s provisions.
Is everyone’s tax burden lower now?
Not necessarily. Some changes benefit specific deductions and business expenses. Individual taxpayers may see changes like expanded deductions, but overall tax burden depends on your company’s and your personal tax profile.
Should I plan for more tax changes later in 2026?
Yes, tax policy is still evolving, and regulatory guidance for OBBBA provisions is rolling out throughout the year. Monitoring IRS updates and working with a tax professional is essential for staying ahead
