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An analysis by Leo Berwick, Taxand USA
The One Big Beautiful Bill Act (OBBBA), signed on 4 July 2025, introduces wide-ranging tax changes that reshape the deal landscape. Tania Wang, Deanna Walton Harris and Toni Lewis from Leo Berwick, Taxand USA, have published an examination of the act and its implications for M&A.
Key measures include restoring EBITDA as the basis for interest deductibility, reinstating 100% bonus depreciation and immediate expensing of domestic R&D, and enhancing Qualified Small Business Stock (QSBS) relief. The Act also raises the SALT cap, extends scrutiny of Employee Retention Credit claims, and tweaks international rules, slightly increasing tax on foreign income.
While Section 899’s proposed “revenge tax” was dropped, the package overall provides significant benefits for leveraged buyouts, capital-intensive businesses, and innovation-driven targets, offering fresh opportunities in M&A structuring.
You can read the full article here.
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