OBBBA Tax Provision Summary Chart 2025 July 16, 2025 | Page 7

BUSINESS( MANUFACTURING)

CHANGE PREVIOUS LAW OBBBA CHANGE IMPACT ON YOU / YOUR BUSINESS
Special Depreciation Allowance for Qualified Production Property
No special 100 % depreciation for nonresidential real property used in manufacturing
Temporary 100 % expensing for certain nonresidential real property used in qualified production activities, with recapture rules
Major benefit for manufacturers investing in new or improved facilities
Advanced Manufacturing Investment Credit
25 % of qualified investment Increased to 35 %
Stronger incentive for advanced manufacturing investments

BUSINESS( NOT-FOR-PROFIT)

CHANGE PREVIOUS LAW OBBBA CHANGE IMPACT ON YOU / YOUR BUSINESS
Expansion of Tax on Excess Compensation in Tax-Exempt Organizations
Covered employees were limited to the top 5 highest-paid in any year after 2016.
Now includes any employee or former employee who was ever a covered employee after 2016.
Increases the number of employees subject to the excise tax, raising compliance costs and potentially limiting high compensation in taxexempt organizations.
Modification of Excise Tax on Private College Endowments
Flat 1.4 % tax on net investment income for large private colleges.
Graduated rates: 1.4 % for $ 500k- $ 750k / student, 4 % for $ 750k- $ 2M, 8 % for over $ 2M, with expanded definition of investment income.
Increases the tax burden on colleges with larger endowments per student, potentially reducing funds available for scholarships, research, and operations.

OBBBA Tax Provision Summary Chart reaadvisory. com 7