PwC's accounting podcast Accounting for US tax reform - One Big Beautiful Bill Act and more
Sep 16, 2025
Join Pat Brown, National Tax Office Co-Leader at PwC, and Jennifer Spang, income tax accounting leader with over 25 years of experience, as they delve into the sweeping 2025 US tax reforms. They discuss key changes like permanent bonus depreciation, the return of immediate R&D deductibility, and tweaks to international tax rules such as GILTI and FDII. The conversation also covers the impact on clean energy credits and corporate charitable contributions. Listen in for insights on the future of corporate tax policy and crucial accounting implications!
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International Tweaks Ease GILTI And FDII Pain
- International changes tweak GILTI/FDII rates but ease key mechanics, like foreign tax credit apportionment and FDII tangible property floor.
- Those mechanical fixes can materially reduce U.S. tax on foreign operations despite modest rate increases.
Account For GILTI Choice And Valuation Now
- If you treat GILTI in deferred tax measurement, assess effects at enactment; otherwise impacts generally start when effective.
- Revisit valuation allowance now because delayed effective dates still affect forecasts used in period-of-enactment accounting.
Energy Credits Kept But Timeframes Tightened
- IRA clean-energy credits were partly preserved but timelines tightened and some credits were repealed immediately, prompting rushed market responses.
- The bill accelerated service/placement deadlines and removed some EV credits, affecting investment timing.