While opinions on the One Big Beautiful Bill Act are mixed, a recent survey indicates that a plurality of CFOs expect their companies to benefit from it.
So said 44% of the 233 finance chiefs who participated in Grant Thornton’s fourth-quarter survey, compared with only 18% who believed the law would harm their financial position.
According to the survey report, companies are well-prepared to take advantage of OBBBA’s domestic opportunities, such as the restored 100% bonus depreciation, the reinstated immediate expensing for R&D costs and new rules for interest-expense deductions that make it easier for capital-intensive businesses to deduct interest.
The prospects for such tax savings are likely one reason why many companies are planning for heightened strategic spending in the coming year, the report noted. For instance, 51% of the survey participants said they expect operations expenses to increase, up from 35% who said so in Grant Thornton’s third-quarter survey.
Also, the portion who expect to cut costs on long-term strategic initiatives retrenched to 28%, down from 36% the previous quarter.
Further, the percentage of CFOs citing cash and liquidity as a top three area of focus fell sharply, from 45% in the third quarter to 30% in Q4. The same was true for cost optimization, which retreated from 48% to 37%.
Despite CFOs’ generally positive view of the OBBBA, significant concerns remain around the implementation of the law’s business tax provisions. Leading the list of worries were understanding eligibility and compliance requirements and adjusting tax-planning strategies for 2025 and beyond.
According to the report, though, company leaders may not be fully aware of everything the OBBBA offers.
For one, they may be missing out on opportunities to use provisions of the law to lower their international tax exposure, including reforms of GILTI, FDII and BEAT rules, said David Sites, national managing partner for Grant Thornton’s Washington National Tax office and the firm’s International Tax Solutions practice.
There also may be overlooked risks related to state taxes, Grant Thornton wrote. For instance, there may be increased state audit activity, as states are hiring some IRS employees who lost their jobs amid last year’s workforce reductions in a bid to rebuild their tax-enforcement ranks, “which have been understaffed for several years.”
“Companies shouldn’t underestimate the potential risks of lack of conformity across their state tax profile,” said Dana Lance, national tax managing partner for Grant Thornton Advisors.
