Day: March 23, 2026

Tax Law Changes Impacting Healthcare Entities in 2026

The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, has implemented numerous significant changes to the U.S. tax code. The law’s provisions impact organizations across a wide range of industries—including healthcare entities. Below are some of the key tax law changes under the OBBBA that could impact your health care organization this year.

Bonus Depreciation

The OBBBA has permanently restored 100% bonus depreciation for qualified property placed in service as of January 19, 2025. Healthcare entities can now immediately write off capital investments, such as new medical equipment, facility upgrades, expansions, and technology infrastructure.

Section 179 Deduction

The expensing limit for the Section 179 deduction, which allows businesses to deduct the full cost of qualifying equipment in the year it is placed into service, has been increased to $2.5 million.

SALT Cap

The OBBBA has temporarily increased the federal deduction limit for state and local taxes (SALT cap) from $10,000 to $40,000. This limit will be adjusted each year for inflation until 2029, after which 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. Importantly for many businesses, the OBBBA imposes no limitations on Pass-Through Entity Taxes (PTET), which serve as workarounds for SALT.

R&D Deductions

Healthcare organizations investing in research and development activities—such as developing new medical techniques, testing new medical devices, or conducting clinical trials—can now deduct these costs immediately. Under the OBBBA, U.S. research and development (R&D) 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 and 2024 may elect to accelerate the remaining deductions for those expenditures over one or two years. Unlike domestic expenditures, however, foreign R&D costs continue to require a 15‑year amortization under Section 174.

QBI Deduction

The OBBBA permanently extends the Qualified Business Income (QBI) deduction, which allows eligible taxpayers to deduct up to 20% of their qualified business income.

Limitation on Business Interest

The OBBBA reinstated 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 now be computed without regard to the deduction for depreciation, amortization, or depletion. For health care entities financing new facilities or expansions through debt, this shift back to an EBITDA-based calculation may allow for greater deductibility and improved cash flow.

New Deduction for Qualified Overtime

For tax years 2025 through 2028, the OBBBA creates a temporary deduction up to $12,500 for individuals who receive qualified overtime compensation, with phaseouts for high earners. “Qualified overtime compensation” is defined as the premium (“half”) portion of overtime pay required under the Fair Labor Standards Act (FLSA). Qualified overtime pay must be separately reported on employee W-2s. Healthcare organizations that employ large numbers of hourly employees may need to update their payroll systems to track qualified overtime compensation.

Partner with RBT CPAs for Expert Guidance

RBT CPAs’ specialized healthcare accounting team is here to help you navigate the tax law changes under the One Big Beautiful Bill Act and to make the most of expanded tax incentives in 2026 and beyond. Our experienced team of professionals is available to support all of your organization’s accounting, tax, audit, and advisory needs. Give us a call today and find out how we can be Remarkably Better Together.

Why You Should Equip Your Practice with a Team of Vet-Focused Professionals

Providing high-quality care for patients is the top priority for any veterinary practice. However, veterinary practices must also navigate the many financial, legal, and operational complexities that come with running a business. Surrounding yourself with professionals who understand the unique challenges and needs of veterinary practices can have a profound impact on your practice’s long-term success.

Let’s talk about what kinds of vet industry-focused advisors you should consider adding to your team.

Accountants

The benefits of specialized, vet-centric accounting services span across many areas of practice management. Veterinary-focused CPAs offer services extending beyond just tax preparation to encompass all aspects of a practice’s financial health. Veterinary accountants are well-versed in industry benchmarks and can help you understand where your practice can move the dial to increase profitability and attain your goals. They can provide a range of financial services tailored to the unique needs of your practice, including veterinary bookkeeping and accounts payable services, budgeting and forecasting, part-time CFO services, cash flow management, financial reporting and analysis, audits, and veterinary software advisory services. And of course, CPAs specializing in veterinary accounting are uniquely qualified to provide you with industry-specific tax planning guidance, helping you to navigate complex tax matters such as buy-ins and buy-outs, sales and use taxes, equipment depreciation, and succession planning.

Attorneys

Veterinary lawyers specialize in issues specific to veterinary medicine, such as licensing and board regulations, animal welfare laws, state and federal compliance, legal standards of care, malpractice lawsuits, practice acquisitions, employment contracts, practice leases, and partnership agreements. An attorney who specializes in veterinary law will be deeply familiar with the legal considerations specific to the veterinary industry.

Bankers

Many banks have industry-specific teams dedicated to working with veterinary practices. These teams offer specialized services such as practice acquisition financing, construction loans, equipment financing and leasing, risk management, and veterinary student loan refinancing. Vet-specific bankers offer their expertise for startups, acquisitions, and expansions, ensuring more favorable financing options.

Real Estate Experts

Considering starting your own practice, relocating, or expanding? Veterinary practices benefit significantly from working with a real estate broker who specializes in veterinary and healthcare properties. Veterinary facilities have unique requirements that general commercial brokers may not fully understand. By working with a veterinary-specific real estate broker, your practice gains a knowledgeable advocate who understands both the real estate market and the realities of running a veterinary hospital.

Benefits of a Specialized Team

A team of specialized advisors can help you:

increase your practice’s profitability by optimizing operations and measuring key performance indicators,
make data-informed business decisions,
prevent burnout by offloading complex business tasks to industry experts,
mitigate risk by identifying and preventing potential issues before they occur,
have confidence in your practice’s compliance, and most importantly,
focus on your core mission of providing your patients with excellent care.

RBT—Veterinary Accountants You Can Trust

RBT CPAs’ veterinary accounting team is intimately familiar with the unique challenges and opportunities encountered by veterinary practices. While you focus on providing the highest quality of care to your patients, our team will help you make financial decisions that strengthen your profitability, compliance, and long-term success. RBT is here to support all of your practice’s accounting, tax, audit, and advisory needs and can also refer you to specialized professionals in other fields. Contact RBT CPAs today and find out how we can be Remarkably Better Together.

What are Required Minimum Distributions and When Do You Have to Start Taking Them?

People are often confused about the rules surrounding required minimum distributions (RMDs). This article provides answers to common questions regarding the rules and timelines surrounding RMDs.

If you turned 73 in 2025 and own a retirement account, you will likely need to take your first required minimum distribution by April 1, 2026, to avoid potential penalties.

What is an RMD?

A required minimum distribution (RMD) is the minimum amount that must be withdrawn each year from certain retirement accounts once the account holder reaches age 73.

Retirement Plans Subject to RMD Rules

RMD requirements generally apply to the following retirement plans:

Employer-sponsored retirement plans, including profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans
IRA-based plans such as traditional IRAs, Simplified Employee Pension (SEP) IRAs, and SIMPLE IRAs
Inherited Roth IRAs and designated Roth accounts after the death of the account holder

When are you required to start taking RMDs?

Owners of IRA-based retirement plans must begin taking RMDs in the year they turn 73, even if they are still working.

If you turned 73 during 2025, your first RMD must be taken by April 1, 2026. Your second RMD must then be taken by December 31, 2026.

For workplace retirement plans (i.e.,401(k) or profit-sharing plans), RMDs can generally be delayed until retirement if you are still working. However, this exception does not apply to individuals who own 5% or more of the business sponsoring the retirement plan.

What happens if you fail to take an RMD?

If you do not withdraw the full required amount within the specified time frame, you may be subject to a 25% excise tax on the amount that should have been withdrawn.

If the error is corrected within two years, the penalty may be reduced to 10%. In certain cases, the penalty may also be waived if the individual can demonstrate that the failure to take the RMD was due to reasonable error and that appropriate corrective steps are being taken.

How is your RMD calculated?

Your RMD is calculated by dividing the balance of your retirement account as of December 31 of the previous year by a life expectancy factor provided by the IRS in Publication 590-B.

Most individuals use the “Uniform Lifetime Table” to determine their life expectancy factor.

Example

A 73-year-old individual has $100,000 in their retirement account as of December 31, 2025.

According to the Uniform Lifetime Table, the life expectancy factor for someone age 73 is 26.5.

$100,000 ÷ 26.5 = $3,773.58

In this example, the individual’s RMD would be $3,773.58.

Can you withdraw more than the required minimum?

Yes. You are always permitted to withdraw more than the required minimum distribution in any given year.

Are RMDs taxable?

Yes. RMDs are generally taxable as ordinary income because contributions to these retirement accounts were typically made with pre-tax dollars.

However, New York State provides a retirement income exclusion. Individuals age 59½ or older may exclude up to $20,000 of retirement income per year from New York State income tax. Married couples filing jointly may each qualify for this exclusion.

Additional Information and Guidance

Additional information and answers to common questions can be found on the IRS Required Minimum Distribution (RMD) FAQs. To avoid potential penalties and ensure accurate calculations, consider working with an accounting professional familiar with RMD requirements, deadlines, and tax implications. RBT CPAs’ estate planning team is here to answer your RMD-related questions, and to support all of your other accounting, tax, audit, and advisory needs. Give us a call today to find out how we can be Remarkably Better Together.

As Conflict in the Middle East Poses Risk to Global Supply Chains, Here’s What Manufacturers Should Know

As the conflict between the U.S. and Israel, and Iran intensifies, trade in the Middle East is facing major disruptions.

These disruptions have already begun to impact global supply chains, especially for industries reliant on Middle Eastern oil and liquid natural gas for production. Many U.S. manufacturers are bracing for supply chain disruptions while planning for potential short-term and long-term economic impacts of war with Iran.

Currently, the most significant impact on global supply chains stems from disruption to the Strait of Hormuz, a crucial shipping channel in the Middle East connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea. Approximately 20 percent of the world’s oil and gas is shipped via the Strait of Hormuz. Following the joint strike against Iran by the U.S. and Israel on February 28, access to this vital trade channel has effectively been cut off, with Iran threatening to attack any ships attempting to pass through. The closure poses serious operational challenges for ships in the area, including oil and liquid natural gas tankers. Many ships are rerouting via the Cape of Good Hope, which will result in significant delays for deliveries. The closure of multiple airports and large portions of airspace in the Middle East due to high security risk has also stalled the movement of air cargo in the region.

The extent of the impact on global manufacturing depends largely on how long the conflict lasts. Logistics Viewpoints compares the potential fallout resulting from a short-term versus a prolonged conflict, predicting that even a short-lived conflict of seven days or less will result in a surge in crude oil prices, higher raw material costs, shipping delays, and raw material shortages. A prolonged conflict, on the other hand, would have a much more significant impact on global supply chains. According to Logistics Viewpoints’ analysis, if the war extends beyond four weeks, manufacturing companies will face even greater pressures related to energy prices, logistics costs, raw material availability, and consumer demand.

As of right now, the duration of the war against Iran remains unknown. Manufacturing companies are encouraged to prepare for possible economic impacts by assessing supply chain exposure, diversifying supply chains, and planning for various potential scenarios. RBT CPAs’ manufacturing accounting team will continue to monitor the impact of the conflict on manufacturing companies and we are ready to assist you in planning strategically in the face of potential supply chain disruptions. And as always, RBT is here to support all of your business’s accounting, tax, audit, and advisory needs while you focus on risk management and mitigation strategies. Give us a call today and find out how we can be Remarkably Better Together.

Timeline of Expiring Clean Energy Incentives: Key Dates for Contractors to Know

Among the many tax law changes stemming from the One Big Beautiful Bill Act (OBBBA) is an overhaul of existing clean energy tax incentives. Some incentives have already expired as of December 2025, while others are set to terminate in 2026. Below is a timeline of expiring federal clean energy tax incentives under the OBBBA, including some key dates contractors should keep in mind.

Credits That Have Already Expired

The following clean energy credits expired within the last year:

Section 25E Previously-owned Clean Vehicles Credit and Section 30D New Clean Vehicle Credit—expired after September 30, 2025

Two credits related to the purchase of clean vehicles, the Previously-owned Clean Vehicles Credit and the New Clean Vehicle Credit, expired for vehicles acquired after September 30, 2025.

Section 25D Residential Clean Energy Credit—expired after December 31, 2025

The Residential Clean Energy Credit is a 30% credit that applies to the purchase of new, qualified clean energy property for a primary or secondary residence. Property had to be fully installed and placed in service by December 31, 2025, in order to qualify for the credit.

Section 25C Energy Efficient Home Improvement Credit—expired after December 31, 2025

The Energy Efficient Home Improvement Credit is a 30% credit (up to $3,200 a year) that applies to qualified energy-efficient improvements to a primary residence. Property had to be placed in service by December 31, 2025, to qualify for the credit.

Incentives Expiring in 2026 and 2027

The following federal incentives are set to terminate in 2026 or 2027:

Section 179D Energy Efficient Commercial Buildings Deduction—expires for projects with construction beginning after June 30, 2026

The Energy Efficient Commercial Buildings Deduction is a tax deduction available to qualifying building owners who place in service energy-efficient commercial building property (EECBP) or energy-efficient commercial building retrofit property (EEBRP). Projects subject to the 179D deduction have to begin construction before June 30, 2026, in order to still be eligible for the deduction.

Section 30C Alternative Fuel Vehicle Refueling Property Credit—expires after June 30, 2026

The Alternative Fuel Vehicle Refueling Property Credit is a tax credit available to businesses and individuals who install qualified refueling or recharging property, including electric vehicle charging equipment, in a qualifying location. This credit expires for property placed in service after June 30, 2026.

Section 45L New Energy Efficient Home Credit—expires for homes acquired after June 30, 2026

The New Energy Efficient Home Credit is a tax credit available to eligible contractors who build or substantially reconstruct qualified new energy-efficient homes. The amount of the credit depends on the type of home, its energy efficiency, and the date the home is acquired. Eligible contractors may be able to claim up to $5,000 per home. This credit will not be allowed for any new energy-efficient home acquired after June 30, 2026.

Section 48E Clean Electricity Investment Tax Credit and Section 45Y Clean Electricity Production Tax Credit for solar and wind projects—expire for facilities placed in service after December 31, 2027

Phase-outs for two major federal tax incentives for renewable energy have been accelerated under the OBBBA. The Clean Electricity Investment Credit (ITC) and the Clean Electricity Production Credit (PTC) for the construction of applicable wind and solar facilities are set to terminate after 2027.

The deadlines for eligibility for these credits are as follows:

For solar and wind projects starting before July 4, 2026: the contractor has (the standard) up to four years to complete the project and claim the ITC and PTC.
For solar and wind projects starting after July 4, 2026: the project must be completed by December 31, 2027, in order to be eligible for the ITC and PTC.

The IRS has released guidance regarding the “beginning of construction” for the purpose of enforcing the ITC and PTC credit termination date for solar and wind facilities.

Looking Forward

2026 and 2027 will be critical for capitalizing on these federal tax incentives while they are still available. Consider meeting with your RBT accountant soon to discuss the possibility of claiming clean energy tax credits and deductions before they expire. Contact RBT CPAs today to find out how we can be Remarkably Better Together.