Month: July 2025

Breaking Down the OBBBA: Tax Law Updates for Breweries and Distilleries

The widely discussed One Big Beautiful Bill, officially signed into law earlier this month, extends many provisions of the Tax Cuts and Jobs Act of 2017 and imposes several new tax and spending policies. The bill’s policies affect nearly every sector of the U.S. economy, impacting individuals, businesses, and organizations in various ways. In general, the bill’s provisions are favorable for many U.S. businesses, extending and creating various business tax incentives, increasing access to capital, and encouraging investment and development. For the purposes of this article, we will explore the provisions of the OBBBA most pertinent to brewers, distillers, and distributors.

Please note that the following are federal provisions, and may apply differently depending on the state in which you operate.

Bonus Depreciation

The OBBBA makes permanent 100% bonus depreciation for qualified property placed in service as of January 19, 2025, reversing the planned phase-down of bonus depreciation. This provision will benefit brewers and distillers investing in new capital equipment, allowing these purchases to be written off immediately.

Depreciation for Qualified Production Property

The OBBBA introduces an elective additional first-year 100% depreciation deduction for “qualified production property,” that is, nonresidential real property used in manufacturing or production activities.

Increased Section 179 Deduction

The Section 179 deduction allows businesses to deduct the full cost of qualifying equipment in the year it is placed into service. The OBBBA increases the Section 179 expensing limit to $2.5 million. This limit is reduced by the amount by which the cost of qualifying property exceeds $4 million (new phasedown threshold).

QBI Deduction

The OBBBA permanently extends the Qualified Business Income (QBI) deduction. This deduction allows eligible taxpayers to deduct up to 20% of their qualified business income. The permanent extension includes additional modifications that expand the phase-in range of the wage and investment limitation and introduce a minimum deduction for businesses in which the taxpayer materially participates.

Immediate R&D Deductions Restored

Among the provisions of the OBBBA are changes to the tax treatment of research and development expenses, designed to encourage domestic research activity. U.S. research and development expenditures, previously required to be amortized over five years, can now be deducted in the year paid. Small businesses averaging $31 million or less in annual gross receipts may elect to apply the change retroactively for tax years beginning after December 31, 2021. All businesses that made domestic R&D expenditures between 2022-2024 may elect to accelerate the remaining deductions for those expenditures over one or two years. Unlike domestic expenditures, foreign R&D costs continue to require a 15‑year amortization under Section 174.

This provision will benefit brewers and distillers investing in research and development activities such as developing new flavors, experimenting with new ingredients, or exploring new production processes.

Removal of Clean Energy Incentives

The OBBBA terminates, phases out, or curtails many clean energy tax incentives, including the energy-efficient commercial buildings deduction, the commercial clean vehicle credit, and certain credits for wind and solar investments.

More to Come

Overall, the One Big Beautiful Bill Act presents expanded opportunities for breweries and distilleries to save on taxes, invest in new equipment, and innovate their products and/or processes. RBT CPAs will continue to provide updated information to our clients as more detailed guidance on the OBBBA is issued. In the meantime, if you have questions regarding the recent tax law changes, please don’t hesitate to reach out to our experts at RBT CPAs. And as always, RBT CPAs is here to support all of your accounting, audit, tax, and advisory needs. Get in touch with us today to find out how we can be Remarkably Better Together.

Will the Budget Reconciliation Bill Impact Affordable Housing in the U.S.?

The budget reconciliation bill, known as the One Big Beautiful Bill Act (OBBBA), after being passed by the Senate and House, was signed into law by the president on July 4. This expansive piece of legislation introduces significant changes to existing tax and spending policies, impacting a wide range of government departments and funding sources. This article addresses some of the changes under the OBBBA relevant to the affordable housing space, as well as some policies that remain unchanged for now.

GRRP Funds Rescinded

The OBBBA rescinds all unobligated funding appropriated to the Green and Resilient Retrofit Program (GRRP). The GRRP is a program administered by HUD and funded by the Inflation Reduction Act (IRA), designed to improve the energy efficiency, water efficiency, and climate resilience of HUD-assisted multifamily properties. The program provided funding to owners of HUD-assisted multifamily housing for investments in green technologies, climate resilience strategies, and energy-efficient projects. The elimination of the GRRP may disrupt previously planned projects and may add strain to PHA budgets due to potentially higher energy costs.

Expansion of Low-Income Housing Tax Credit (LIHTC)

The OBBBA permanently increases allocations for 9% LIHTC by 12%, and also permanently reduces the private activity bond financing requirement for 4% LIHTC from 50% to 25%. These changes will become effective January 1, 2026. This expansion will encourage investment in the Low-Income Housing Tax Credit program and is expected to increase the affordable rental housing supply.

Qualified Opportunity Zones and New Markets Tax Credit Made Permanent

The OBBBA makes the Opportunity Zones (OZ) tax incentive permanent, with several modifications, including a narrower definition of “low-income community” and expanded reporting requirements. Every ten years, state governors will propose new opportunity zones. The bill also includes additional incentives for rural opportunity zones. The OBBBA also makes the Sec. 45D New Markets Tax Credit (NMTC) permanent. These provisions will encourage investment and construction in economically distressed communities and rural areas.

Changes to Medicaid and SNAP

The stricter eligibility requirements and funding cuts to Medicaid and SNAP programs imposed by the OBBBA will likely impact tenants of PHAs. Reduced access to government-funded benefits will require tenants to allocate more of their income towards food and medical costs, which may make it difficult for some to afford rent. As a result, housing authorities may face heightened rent collection challenges, including increased instances of arrears, evictions, and lease violations.

What the OBBBA Has Not Changed

The OBBBA does not make any cuts or structural changes to Section 8, public housing, or HUD rental assistance. While the proposed FY26 budget includes potential significant cuts to HUD, funding for these programs remains unchanged for now as the FY26 budget is yet to be finalized.
The OBBBA does not impose work requirements or two-year limits on rental assistance recipients, two proposals that have been put forward in recent months.

Conclusion

While HUD programs themselves may not be significantly impacted by the passage of the One Big Beautiful Bill Act, some provisions of the new legislation will affect tenants of PHAs, as well as the wider affordable housing space. For more information about the recent tax law changes, please don’t hesitate to reach out to our experts at RBT CPAs. And as always, RBT CPAs is here to support all of your PHA’s accounting, audit, tax, and advisory needs. Contact us today to find out how we can be Remarkably Better Together.

How Does the One Big Beautiful Bill Act Impact K-12 Education?

The recently passed budget reconciliation bill, entitled the One Big Beautiful Bill Act (OBBBA), implements several new tax and spending policies and extends many policies previously set to expire. The OBBBA contains hundreds of provisions applying to individuals, businesses, and federal programs. Policies affected range from tax rates and incentives to healthcare programs to defense spending, and more. RBT CPAs has been assessing the impact of the OBBBA across the industries we serve. This article highlights some of the key provisions of the One Big Beautiful Bill Act impacting K-12 education, both directly and indirectly.

Changes to Medicaid

The OBBBA makes several significant changes to Medicaid programs, including a new requirement that able-bodied adults aged 19 to 64 enrolled in Medicaid must spend at least 80 hours per month working or participating in other qualifying activities (i.e., community service, job training, educational programs) to maintain eligibility. Certain exemptions apply, including for pregnant women, caregivers of young children, and individuals with specific qualifying medical conditions. The legislation also reduces Medicaid eligibility based on legal status. An individual’s eligibility must now also be reassessed by states at least every 6 months.

Additionally, according to estimates released by the Congressional Budget Office (CBO), the OBBBA is projected to reduce federal health spending by approximately $1 trillion over the next decade. CBO estimates that these cuts will increase the number of people without health insurance by 10 million by 2034.

Not only do many K-12 students throughout the U.S. rely on Medicaid for health insurance, but many school districts also rely on Medicaid funding to support health services for students from low-income families. The stricter eligibility requirements and funding cuts imposed by the OBBBA are expected to result in many students losing access to health insurance as well as a reduction in school-based health services.

Changes to SNAP

The new legislation also imposes steep cuts to the Supplemental Nutrition Assistance Program (SNAP), as well as stricter eligibility requirements for recipients. As a result, many families are predicted to lose access to government-funded food assistance.

Increased Child Tax Credit

The OBBBA permanently increases the Child Tax Credit (CTC) to $2,200 per qualifying child under the age of 17, effective for tax year 2025 and indexed annually for inflation. The maximum refundable portion has been raised to $1,700, also adjusted annually for inflation. At least one parent and all qualifying children must possess valid Social Security numbers in order to qualify for this credit.

Expansions to 529 Education Savings Plans

The OBBBA expands permitted uses of funds in 529 education savings plans by broadening the definition of “qualified expenses.” Beyond tuition, tax-exempt distributions from 529 savings plans can now apply to additional expenses related to enrollment in private, public, or religious elementary or secondary schools, including books, materials, testing fees, tutoring costs, dual enrollment fees, and educational therapies. The OBBBA also increases the annual limit for 529 account distributions for K-12 expenses from $10,000 to $20,000.

Federal School Voucher Program

Beginning in 2027, individual taxpayers can claim a dollar-for-dollar tax credit of up to $1,700 for gifts to qualified K-12 Scholarship Granting Organizations (SGOs) operating in states that have elected to participate. SGOs distribute these donations through scholarships for students enrolled in private schools. Many in the education space are concerned that this federal tax incentive created by the OBBBA will divert taxpayer money away from public schools to private schools.

Questions and Further Guidance on the OBBBA

The OBBBA is an expansive piece of legislation enacting many significant policy changes, several of which will impact public school districts, families, and students. Please note that IRS guidance on the new legislation is still forthcoming. RBT CPAs will continue to provide updated information to clients as more detailed guidance is issued. In the meantime, if you have questions regarding the recent tax law changes, please don’t hesitate to reach out to our experts at RBT CPAs. And as always, RBT CPAs is here to support all of your school district’s accounting, audit, tax, and advisory needs. Contact us today to find out how we can be Remarkably Better Together.

Key Provisions of the One Big Beautiful Bill Impacting Local Governments

On July 4, the president signed into law the One Big Beautiful Bill Act (OBBBA), implementing many significant tax and spending policy changes. The law’s provisions are wide sweeping, encompassing policies on tax rates and incentives, education funding, healthcare programs, defense spending, and more. This article highlights some of the key provisions of the legislation most likely to impact local governments, according to the Government Finance Officers Association (GFOA).

Please note that IRS guidance on the new legislation is still forthcoming. RBT CPAs will continue to provide updated information as this guidance is issued.

Tax Exemption on Municipal Bonds

Under the OBBBA, tax exemptions on municipal bonds, 501(c)3 bonds, and private activity bonds are preserved. The GFOA emphasizes the importance of these financing instruments in funding critical public projects, including essential infrastructure and community improvement projects. The OBBBA also expands the tax code to include additional provisions authorizing tax-exempt bond financing for spaceports. The National League of Cities (NLC) recognizes the preservation of tax-exempt municipal bonds and private activity bonds as a “critical financial win for cities, towns, and villages across America.”

Increased SALT Cap

The OBBBA temporarily increases the federal deduction limit for state and local taxes (SALT cap) from $10,000 to $40,000, adjusted each year for inflation until 2029. The deduction phases out for taxpayers with modified gross income (MAGI) greater than $500,000 in 2025, with the MAGI threshold adjusted for inflation until 2029. In 2030, the SALT cap will revert to $10,000.

Removal of Clean Energy Incentives

The OBBBA terminates or phases out many clean energy tax incentives, including Section 179D (energy-efficient commercial buildings deduction), Section 45L (new energy-efficient home credit), Section 48E (clean electricity investment credit), and Section 45Y (clean electricity production tax credit), among others.

Expansion of Low-Income Housing Tax Credit (LIHTC)

The OBBBA permanently increases allocations for 9% LIHTC by 12%, and also permanently reduces the private activity bond financing requirement for 4% LIHTC from 50% to 25%. These changes will become effective January 1, 2026. These provisions will encourage more investment in the LIHTC program.

Child Tax Credit

Qualified Opportunity Zones

The OBBBA makes the Opportunity Zones tax incentive permanent, with several modifications including a narrower definition of “low-income community” and expanded reporting requirements. Every ten years, state governors will propose new opportunity zones. The OBBBA also includes additional incentives for rural opportunity zones. This provision becomes effective January 1, 2027.

Changes to Medicaid

The OBBBA makes several significant changes to Medicaid programs, including a new requirement that able-bodied adults aged 19 to 64 enrolled in Medicaid must spend at least 80 hours per month working or participating in other qualifying activities (i.e., community service, job training, educational programs) to maintain eligibility. Some exemptions exist, such as for pregnant women, caregivers of young children, and people with certain qualifying medical conditions. The legislation also reduces Medicaid eligibility based on legal status. Eligibility must be reassessed by the state at least every 6 months.

Changes to SNAP

The OBBBA also makes significant changes to the Supplemental Nutrition Assistance Program (SNAP). Under the new legislation, states will have to contribute to food benefits beginning in FY 2028. The amount that each state contributes depends on that state’s payment error rate from three fiscal years prior (cost share rates for FY 2028 will be based on FY 2025 payment error rates). The OBBBA also extends work requirements to adults aged 55-64 and parents of children 14 and older, requiring these individuals to work for at least 20 hours a week in order to qualify for SNAP benefits.

Additional Guidance

The One Big Beautiful Bill Act is an expansive piece of legislation containing many significant policy changes. RBT CPAs will continue to keep our clients apprised as additional information and guidance is released regarding the OBBBA. GFOA is offering a webinar on August 21, 2025 for government finance professionals seeking to understand and implement the new legislation. In the meantime, if you have questions regarding the recent tax law changes, please don’t hesitate to reach out to our experts at RBT CPAs.

How Will the One Big Beautiful Bill Act Impact the Restaurant Industry?

On July 4, the president signed into law the One Big Beautiful Bill Act (OBBBA), implementing many significant tax and spending policy changes and extending many tax provisions previously set to expire. IRS guidance on the new legislation is still forthcoming—RBT CPAs will continue to provide updated information as this guidance is issued. But for now, here are some of the key provisions of the legislation impacting the restaurant industry.

No Tax on Tips

The OBBBA creates a temporary deduction of up to $25,000 per year for qualified tips received by individuals in occupations where tipping is regular and customary, available for tax years 2025 through 2028. The deduction begins to phase out when the taxpayer’s modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for joint filers).

The deduction is limited to tips voluntarily paid by customers (not mandatory service charges), including tips shared through pooling arrangements. W-2s and 1099s will need to reflect the qualifying tipped occupation for both employees and contractors. The Treasury Department is expected to issue a list of eligible occupations and provide further IRS guidance for tracking designated cash tips.

No Tax on Overtime

The OBBBA creates a temporary deduction of up to $12,500 ($25,000 for joint returns) for individuals who receive qualified overtime compensation (as defined by the Fair Labor Standards Act), available for tax years 2025 through 2028. The deduction applies only to overtime compensation and begins to phase out when the taxpayer’s modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for joint filers).

The deduction applies only to federally required overtime under FLSA (Section 7), not to enhanced state overtime rules or those negotiated under collective bargaining agreements. W-2s will need to separately report qualified overtime compensation. Employers are strongly encouraged to review exempt and non-exempt classifications now to prepare for future IRS scrutiny.

Bonus Depreciation

The OBBBA makes permanent 100% bonus depreciation for qualified property, including qualified leasehold improvements, placed in service as of January 19, 2025.

Increased Section 179 Deduction

Section 179 lets businesses deduct the cost of most tangible equipment (and certain building improvements) instead of depreciating it over time. The OBBBA increases the Section 179 expensing limit to $2.5 million. The limit is reduced by the amount by which the cost of qualifying property exceeds $4 million (new phasedown threshold).

QBI Deduction

Limitation on Business Interest

The OBBBA reinstates the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) limitation under Sec. 163(j), effective for tax years beginning after December 31, 2024. Adjusted taxable income (ATI) will be computed without regard to the deduction for depreciation, amortization, or depletion.

Additional Guidance

The above provisions represent just some of the recent tax and policy changes that may impact you and your business. To learn about additional relevant provisions—and for insights and guidance on how these changes could affect you—please don’t hesitate to reach out to our restaurant accounting professionals at RBT CPAs. Our team is here to support all of your tax, audit, accounting, and advisory needs. Give us a call today to find out how we can be Remarkably Better Together.

OBBBA Provisions Union Workers Should Know

The budget reconciliation bill, entitled the One Big Beautiful Bill Act (OBBBA), was signed into law by the president on July 4, implementing many significant tax and spending policy changes and extending several policies previously set to expire. The law’s provisions are wide sweeping, affecting individuals, businesses, and other organizations to varying degrees. This article highlights some of the key provisions of the legislation impacting union workers.

Please note that IRS guidance on the new legislation is still forthcoming. RBT CPAs will continue to provide updated information as this guidance is issued.

Permanent Extension of TCJA Tax Rates

The OBBBA makes permanent the tax rates and brackets established by the Tax Cuts and Jobs Act (TCJA) of 2017.

Standard Deduction

The OBBBA locks in the 2017 individual rate schedule and increases the standard deduction to $15,750 for single filers, $23,625 for heads of household, and $31,500 for joint filers, effective in 2025, with ordinary inflation indexing thereafter.

Child Tax Credit

No Tax on Overtime

It is important to note that the deduction applies only to federally required overtime under the FLSA (Section 7), not to enhanced state overtime rules or those negotiated under collective bargaining agreements. W-2s will need to separately report qualified overtime compensation.

Expansion of 529 Plans

The OBBBA expands permitted uses of funds in 529 education savings plans by broadening the definition of “qualified expenses.” Tax-exempt distributions from 529 savings plans now apply to additional expenses related to enrollment in private, public, or religious elementary or secondary schools including books, materials, testing fees, tutoring costs, dual enrollment fees, and educational therapies—in addition to tuition. The OBBBA also increases the annual limit for 529 account distributions for K-12 expenses from $10,000 to $20,000. Additionally, the OBBBA allows 529 plan funds to be used for “qualified postsecondary credentialing expenses,” including tuition, fees, books, supplies, testing, equipment, and continuing education required for participation in a recognized postsecondary credential program.

Additional Guidance

The budget reconciliation bill is an expansive piece of legislation containing many significant policy changes. RBT CPAs will continue to keep our clients apprised as additional information and guidance is released regarding the OBBBA. In the meantime, if you have questions regarding the recent tax law changes, please don’t hesitate to reach out to our experts at RBT CPAs. And as always—RBT CPAs is here to support all of your accounting, audit, tax, and advisory needs. Contact us today to find out how we can be Remarkably Better Together.

The One Big Beautiful Bill Act: Key Provisions Impacting the Real Estate Industry

On July 4, the president signed into law the One Big Beautiful Bill Act (OBBBA), implementing many significant tax and spending policy changes. Below are some of the key provisions of the legislation impacting the real estate industry.

Permanent Extension of TCJA Tax Rates

The OBBBA makes permanent the tax rates and brackets established by the Tax Cuts and Jobs Act (TCJA) of 2017.

Increased SALT Cap

The OBBBA temporarily increases the federal deduction limit for state and local taxes (SALT cap) from $10,000 to $40,000. The limit will be adjusted each year for inflation until 2029. In 2030, the SALT cap will revert to $10,000. The deduction phases out for taxpayers with modified gross income (MAGI) greater than $500,000 in 2025, with the MAGI threshold adjusted for inflation until 2029. For high-income earners before 2030, the SALT deduction is reduced by 30% of their MAGI over the threshold amount, but the deduction will not be reduced below $10,000. The OBBBA places no limitations on Pass-Through Entity Taxes (PTET), which are workarounds for SALT.

Bonus Depreciation

The OBBBA makes permanent 100% bonus depreciation for qualified property placed in service as of January 19, 2025.

Increased Section 179 Deduction

The OBBBA increases the Section 179 expensing limit to $2.5 million. The limit is reduced by the amount by which the cost of qualifying property exceeds $4 million (new phasedown threshold).

QBI Deduction

The OBBBA makes the 20% qualified business income deduction (Sec. 199A) permanent. The minimum deduction for active QBI is $400. To claim the deduction, applicable taxpayers must have a minimum of $1000 QBI from one or more qualified trades or businesses in which they materially participate. The phase-in threshold has been increased to $75,000 (from $50,000) for single filers and $150,000 (from $100,000) for joint filers.

Mortgage Interest Deduction

The OBBBA permanently lowers the deduction limitation for qualified residence interest to the first $750,000 in home mortgage acquisition debt.

Limitation on Business Interest

Expansion of Low-Income Housing Tax Credit (LIHTC)

Qualified Opportunity Zones

Percentage-of-Completion Method

The OBBBA expands the exception to the percentage-of-completion method requirement to certain residential construction contracts.

New Markets Tax Credit (NMTC)

The OBBBA makes the Sec. 45D New Markets Tax Credit permanent.

Removal of Clean Energy Incentives

Additional Guidance

The above provisions represent just some of the recent tax and policy changes that may impact you and your business. To learn about additional relevant provisions—and for insights and guidance on how these changes could affect you—please don’t hesitate to reach out to our real estate accounting professionals at RBT CPAs. Our team is here to support all of your tax, audit, accounting, and advisory needs. Give us a call today to find out how we can be Remarkably Better Together.

When Should You Start Planning a Will?

When you think about creating your will, you may imagine yourself many years down the road, getting your affairs in order when life’s circumstances call for it.

While this may be the case for some people, it isn’t the recommended method.

So, when should you start planning your will? The answer may surprise you.

Best practice is to create a will when you are legally able to, which is generally at the age of 18 in the United States.

While we know that most teenagers are not ringing in their 18^th birthday by drafting a will, typically the sooner a person creates a will, the better. It’s rarely too early to begin planning your will, but there may come a time when it is too late.

So, let’s go over some “will basics,” as well as some important considerations to keep in mind during will planning.

What is a will, and why is it important?

A will is a legal document stating an individual’s wishes for the management and distribution of their estate after death. Not only does a will specify how a person’s assets will be distributed, but it also indicates who can make decisions on that person’s behalf if they are not able to, via legal documents such as healthcare proxies and powers of attorney. Wills can also serve other purposes, such as designating guardianship over minor children.

If a person dies without a will in place, state laws determine how their estate will be distributed. However, the state’s plan may not accurately reflect the decedent’s wishes. Establishing a will early on ensures that your estate is managed according to your wishes—and not the state’s laws—after you pass. A will also makes estate administration easier for your heirs by clearly documenting your wishes and instructions.

Some Important Considerations When Planning a Will

Your will should be reviewed and updated for major life events such as marriage, divorce, birth of a child, etc. Don’t just set it and forget it.
Wills are not just for people with significant assets—they are valuable and necessary tools for everyone, regardless of net worth.
Wills must be executed properly in order to be considered valid. It’s important to be aware of the legal formalities required for the execution of a will, such as the presence of witnesses and the notarization of signatures.
Keep in mind that beneficiary designations override instructions in a will in some cases, such as with life insurance policies, retirement accounts, health savings accounts, and trusts (see here for our article on this topic). Be sure to update your beneficiary designations to reflect any changes to your will.
Creating a will is just one component of the estate planning process. Estate planning may also involve setting up trusts, beneficiary designations, healthcare directives, tax planning, and more.

RBT CPAs’ experts in our Trust, Estate, and Gift Practice can help you create and update a will and estate plan that ensures you and your loved ones will be taken care of according to your wishes during your lifetime and after. RBT CPAs has proudly provided accounting, advisory, tax, and audit services to individuals and businesses in the Hudson Valley and beyond for over 55 years. Get in touch to learn more about our services—and find out how we can be Remarkably Better Together.

Addressing Supply Chain Challenges in 2025

Amid tariffs, trade wars, and continuing geopolitical tensions, supply chain disruptions remain one of the primary concerns among manufacturers in 2025. Let’s look at some of the supply chain-related challenges manufacturers are currently facing, as well as some of the ways businesses are attempting to mitigate these challenges.

Fictiv, a global manufacturing and supply chain company, published its 10^th Annual State of Manufacturing & Supply Chain report for 2025 based on insights from leaders in the industry. The following are some of this year’s most significant supply chain challenges and strategies, according to Fictiv’s report.

Supply Chain Challenges

Trade policies and global uncertainty: Changing tariff policies, geopolitical tensions, and climate-related issues such as natural disasters and major weather events within the past year have led to an increasing state of global uncertainty. This uncertainty impacts supply chains by increasing the risk of disruptions, driving up production costs, and making planning and forecasting more difficult.
Lack of resources: Companies report continued staffing shortages, rising labor costs, and lack of capital as significant factors preventing effective management of supply chains.
Supplier issues: Manufacturers are facing challenges related to supplier quality, reliability, and compliance, making it difficult to maintain production standards.
Lack of supply chain visibility: Lack of visibility along the supply chain hinders manufacturers’ ability to anticipate and manage issues.
Barriers to product innovation: Sourcing has become an obstacle for some when it comes to developing new products. Manufacturers are having difficulty sourcing high-quality product prototypes in small volumes within a fast enough production timeline. In addition, many companies report that their engineers are spending too much time focused on sourcing instead of designing new products.

Supply Chain Strategies

Onshoring and nearshoring: To minimize risk in the face of global uncertainty, many manufacturers are moving operations closer to home, either to the U.S. or other North American countries. Fictiv reports that, of the industry leaders surveyed, “68% of leaders report onshoring to the U.S. as key strategy in 2025, followed by nearshoring (50%) and diversifying global manufacturing operations (39%).”
Diversifying suppliers: Diversifying suppliers helps to strengthen the resilience of supply chains against unpredictable events and circumstances.
Digital manufacturing solutions: “Smart supply chains,” featuring AI and predictive analytics, utilize automation to predict disruptions, forecast demand, assist in maintaining strategic stock levels, and improve visibility.
Focus on sustainability: According to IBM, sustainability in supply chains can “make operations more cost efficient—for example, by reducing waste and minimizing energy requirements—and improve reliability and resiliency within the supply chain. Together, these benefits can deliver significant savings and improve profitability.” Fictiv’s survey indicates sustainability as a priority for manufacturers in 2025, as companies turn to nearshoring and onshoring—along with other strategies—to reduce environmental impact, build more resilient supply chains, and meet customer demand for sustainable practices.

Navigating supply chain challenges and implementing strategic solutions is no simple task, especially given the current climate. For additional guidance, the Manufacturing Extension Partnership (MEP) National Network offers resources and services to help improve supply chain performance and manage disruptions, including supply chain mapping, risk assessment, supplier scouting, procurement strategy, and more.

While you focus on your supply chain and other priorities, you can count on RBT CPAs to handle your accounting, advisory, audit, and tax needs. Give us a call and find out how we can be Remarkably Better Together.

The One Big Beautiful Bill Act: Tax Law Changes Veterinarians Should Know

On July 4, the president signed into law the One Big Beautiful Bill Act (OBBBA), implementing many significant tax and spending policy changes. The law’s provisions are wide sweeping and will have impacts across a range of industries. This article highlights some of the key provisions of the new legislation impacting veterinarians.

Permanent Extension of TCJA Tax Rates

The OBBBA makes permanent the tax rates and brackets established by the Tax Cuts and Jobs Act (TCJA) of 2017.

Increased SALT Cap

Increased Section 179 Deduction

The Section 179 deduction allows businesses to deduct the full purchase price of qualifying property immediately, rather than spreading the deduction out over several years. The OBBBA increases the Section 179 expensing limit to $2.5 million. The limit is reduced by the amount by which the cost of qualifying property exceeds $4 million (new phasedown threshold).

No Tax on Overtime

The OBBBA creates a temporary deduction of up to $12,500 ($25,000 for joint returns) for individuals who receive qualified overtime compensation (as defined by the Fair Labor Standards Act). The deduction applies only to overtime compensation. The deduction begins to phase out when the taxpayer’s modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for joint filers). This deduction is available for tax years 2025 through 2028.

Estate & Gift Tax Exemption Amounts

The OBBBA permanently increases the federal estate tax and lifetime gift exemption amount to $15 million for single filers ($30 million for married couples filing jointly), beginning in 2026. This amount will be indexed for inflation annually.

Alternative Minimum Tax Exemption (AMT)

The OBBBA permanently extends the increased individual AMT amounts established by the TCJA, which will be indexed annually for inflation. The income thresholds for which the exemption begins to phase out have reverted to their 2018 levels of $500,000 for single filers ($1 million for married couples filing jointly), also adjusted annually for inflation. The phaseout rate has been increased to 50% (from 25%) of the amount by which a taxpayer’s alternative minimum taxable income (AMTI) exceeds the threshold amount.

Trump Accounts

The OBBBA establishes a “Trump account,” a new tax-deferred investment account for children who are U.S. citizens under the age of 18. Contributions to these accounts are capped at $5,000 a year (adjusted for inflation after 2027) and can be made by parents, relatives, employers, and other taxable entities, as well as non-profit and government entities. Accounts opened for children born between January 1, 2025, and December 31, 2028 will include a one-time $1,000 government contribution.

Charitable Contributions

For taxpayers who do not itemize, the OBBBA creates a charitable contribution deduction of up to $1,000 for single filers for certain charitable contributions ($2,000 for married couples filing jointly). For taxpayers who choose to itemize, the OBBBA establishes a 0.5% floor on the charitable contribution deduction. For corporations, the bill establishes a 1% floor for charitable deduction contributions. Deductions for corporate charitable contributions cannot exceed 10% of the corporation’s taxable income.

Increased 1099 Reporting Threshold

The OBBBA increases the information-reporting threshold from $600 to $2,000, indexed annually for inflation.

Additional Guidance

The above provisions represent just some of the recent tax and policy changes that may impact you and your practice. To learn about additional relevant provisions—and for insights and guidance on how these changes could affect you—please don’t hesitate to reach out to our veterinary accounting professionals at RBT CPAs. Our team is here to support all of your tax, audit, accounting, and advisory needs. Give us a call today to find out how we can be Remarkably Better Together.