Are you ready for the Big, Beautiful Bill?

The CEO scan: 5 takeaways

1. Bonus/accelerated depreciation can boost near-term cash - but can also pull taxable income forward later (“hamster wheel” effect).
2. R&D treatment is worth revisiting - especially if your assumptions haven’t been updated recently.
3. Green/energy incentives can improve economics, but only if the project still clears your hurdle rate after full underwriting.
4. Tax choices can reshape your capital plan: covenants, interest limits, refinancing timing, and acquisition funding.
5. If succession or a liquidity event is on your horizon, align tax, legal, estate, and finance planning early.

Where SMBs get surprised

• Bonus & accelerated depreciation
  • Model 3–5 years of taxable income and cash flow before you elect acceleration.
  • Plan for the later-year impact (less depreciation later can mean higher taxes when cash is needed for growth).
• R&D treatment
  • Confirm what you assumed in prior years and whether any corrective mechanisms apply to your situation.
  • Update forecasts: timing of deductions can shift cash needs and planning decisions.
• Green/energy projects
  • Re-run ROI and payback with updated incentives and updated financing assumptions.
  • Verify eligibility and documentation requirements early - before you lock in vendors and timelines.
• Financing and growth capital
  • Revisit covenants, interest limits, refinancing options, and liquidity buffers under multiple scenarios.
  • If you’re considering acquisitions, model after-tax cash flow - not just the purchase price and EBITDA.
• Owner wealth and transition planning
  • Avoid optimizing the wrong thing: the best decision isn’t always the one that minimizes this year’s tax.
  • Coordinate estate, legal, tax, and finance planning early if a transition is likely in the next few years.

Questions to bring to the February 10 panel

• If we take bonus depreciation this year, what happens to taxable income and cash needs over the next 3–5 years?
• What R&D assumptions are we making - and what changes if those assumptions don’t hold?
• Which planned capex projects truly improve with incentives (after payback and financing costs)?
• How do these tax choices affect covenants, borrowing capacity, and acquisition funding options?
• What do we need to do now if we’re considering succession or a liquidity event in the next few years?

What to do in the next 30–60 days

• Run a 3–5 year taxable-income and cash-flow forecast (base / upside / downside).
• Model bonus depreciation timing and the downstream “hamster wheel” impact before you elect it.
• Review R&D treatment and assess whether corrective mechanisms for prior years apply to your situation.
• Re-check any green or energy-related projects with updated assumptions and updated incentives.
• Revisit your debt plan: interest limits, covenants, refinancing options, and acquisition funding.
• If a succession, liquidity event, or family transition is on the horizon, coordinate estate, legal, tax, and finance planning early.

Next step

Join our February 10 panel for practical examples and Q&A - or reach out to vcfo or any of the co-authors above to pressure-test your plan.

Date: February 10, 2026
Time: 3:00–5:00 PM
Location: Mays Business School @ City Centre (2nd Floor)
Houston, Texas
Happy Hour: Immediately following at Seasons 52