At Kaplan CFO Solutions, we believe every headline is an opportunity to think strategically. Here’s our take on what the bill means for your business—without the jargon or politics.

1. New Work Requirements May Shift the Labor Market

The bill introduces a 25-hour-per-week work requirement for able-bodied adults on Medicaid and SNAP. While this may reduce government spending, it might possibly increase workforce availability—especially for part-time roles.

What this means for you:

• There could be an influx of part-time workers seeking flexible hours to meet the new threshold.
• Prepare for changes in wage dynamics as competition for those hours increases.
• Consider investing in scheduling tools and time-tracking systems to ensure compliance and talent retention. 

2. Permanent Tax Cuts = New Planning Opportunities

Several provisions of the 2017 Tax Cuts and Jobs Act have now been made permanent. This includes favorable treatment for pass-through entities, lower corporate rates, and an increased SALT deduction cap of $40,000.

What this means for you:

• Revisit tax strategy and entity structure—especially for multi-entity businesses or those with significant pass-through income.
• Model long-term capital planning with reduced tax burdens in mind.

Explore opportunities for new investments or expansion under a more favorable tax structure related to capital expenditure.

Estate and Gift Tax Changes for Business Owners:

The bill raises the estate and gift tax exemption to $15 million per person, effective in 2026 and indexed for inflation in future years. For business owners planning succession, this offers additional time and flexibility to structure ownership transfers—particularly through trusts or family partnerships.

3. Healthcare Cuts Could Drive Benefit Pressure

The bill slashes Medicaid funding by nearly $900 billion over the next decade, which could leave over 10 million people without coverage.

What this means for you:

• A proactive benefits strategy—such as HSAs or telehealth options—can help you attract and retain talent.
• Rising healthcare insecurity may push workers to seek employers with stronger benefits packages.
• Potential increases in your group plan premiums as risk pools shift.

4. Agriculture Businesses Need to Reassess

While the bill rolls back many green energy incentives, it offers expanded expensing, insurance, and tax provisions for agricultural operations.

What this means for you, according to Paul Neiffer at Farm Journal Magazine:

Policy Updates Impacting U.S. Farmers

5. New Limits for Clean Energy and Nonprofits Could Shift Investment Strategies

(This insight was provided from our referral partners at Forvis Mazars)

Alongside new tax provisions, the One Big Beautiful Bill includes several offsetting changes that may affect funding models, giving strategies, and long-term capital planning, particularly for clean energy companies and nonprofit organizations.

For the clean energy sector, timing is everything.

Investment and production tax credits for wind and solar are being reduced or deferred, with added limitations for projects tied to foreign entities. Businesses and investors in renewables should reevaluate project timelines, funding assumptions, and qualification criteria under the revised rules.

Nonprofit entities may face increased tax exposure.

The legislation introduces higher tax rates for certain private foundations and modifies the excise tax on investment income for specific private colleges and universities. These adjustments could influence endowment management, program budgets, and strategic planning over the next fiscal cycle.

For a more comprehensive provision list, visit the Legislative Tracker, directly from Forvis Mazars.

• New Floor for Corporate Charitable Giving: Corporations can now only deduct charitable contributions that exceed 1% of income, up to the existing 10% limit. This may influence annual giving levels, especially for businesses with philanthropic commitments.
  
• Expanded Excise Tax Scope: The definition of “covered employees” subject to the excess compensation excise tax now includes anyone earning more than $1M in any tax year after 2016.
  
• Tiered Investment Income Tax for Higher-Ed: Colleges and universities with large endowments now face a tiered tax on net investment income (up to 8%), with student loan interest and royalty income included in the calculation.

For a more comprehensive provision list, download the full PDF of the One Big Beautiful Bill Act, written and provided by our Partners at TRUIST.

6. Long-Term Risk: Growing Deficit, Future Tax Uncertainty

The Congressional Budget Office projects this bill could add more than $2 trillion to the national debt. For business leaders, that’s not just a headline, it’s a planning variable.

What this means for you:

• Use this moment of tax relief to build reserves, reduce leverage, and prepare for potential fiscal tightening.
• Scenario planning is no longer optional. Your forecasts should account for future economic headwinds—and sudden shifts in policy.
• The Tariff policy is shifting—prepare for potential trade cost increases, particularly if you rely on overseas e-commerce fulfillment or cross-border supply chains.

7. U.S. Manufacturing Incentives Could Accelerate Capital Planning

In a bid to boost domestic production, the bill introduces a 100% special depreciation allowance for construction of qualified U.S.-based factories and related structures.

What this means for you:

• New or improved U.S. manufacturing facilities placed into service between 2025 and 2031 may qualify for full depreciation in the year placed in service.
• Construction must begin between January 20, 2025 and December 31, 2028.
• This provision may accelerate planned facility expansions, or justify new buildouts previously on hold.

From Washington D.C. to Your Balance Sheet

Whether you see this bill as a relief or a risk, the real work begins now. Kaplan CFOs are already helping clients assess the impact on everything from tax liability to workforce strategy.

When policy changes, your strategy should too. Need more insight? Connect with a Kaplan CFO today.