Have You Aligned Your Tax Strategy With These 5 OBBBA Changes?
Individuals and businesses should be working closely with their financial advisers to refine tax strategies this season in light of OBBBA changes. Start with these five key areas.
As 2026 gets underway, individuals and qualifying businesses should be reassessing several tax adjustments already in motion, and refining strategies to ensure they’re positioned as efficiently as possible for the years ahead.
Advisers know there’s rarely a “quiet” moment when it comes to tax planning, but the transition into 2026 is proving especially consequential.
With key provisions of the One Big Beautiful Bill Act (OBBBA) now effective and others phasing in, advisers should be helping clients recalibrate their tax strategies in light of a meaningfully altered landscape.
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1. Itemized deductions
One of the most impactful changes involves itemized deductions, particularly for high-net-worth and ultra-high-net-worth taxpayers.
Under the OBBBA, itemized deductions are now capped at a tax benefit of 35 cents per dollar for those in the top tax bracket, down from as much as 37 cents previously.
While the difference may seem modest, it can materially affect the after-tax value of deductions at higher income levels.
For many taxpayers, this underscores the importance of timing. Advisers should be reviewing whether clients appropriately accelerated and “bunched” deductions ahead of the change and, if not, how to best optimize deductions going forward under the new limitations.
2. Charitable giving
Charitable giving has also entered a new phase. As of 2026, taxpayers can only realize a tax benefit for charitable contributions to the extent they exceed 0.05% of adjusted gross income (AGI).
While this threshold applies universally, the impact is naturally magnified for higher earners. Compounding the effect, the itemized deduction cap further reduces the ultimate tax value of charitable gifts.
These changes reinforce the continued relevance of donor-advised funds (DAFs). For clients who established DAFs before the end of 2025, the ability to front-load contributions preserved deductions under more favorable rules.
Going forward, DAFs remain a powerful planning tool, allowing investors to support charitable causes on a flexible timeline while enabling assets to grow tax-efficiently before distribution.
3. Renewable energy and solar tax credits
Another area where timing proved critical, and where advisers should confirm execution, is renewable energy and solar tax credits. Many of these incentives ended at the end of 2025 under the OBBBA.
Clients who completed qualifying energy-efficient projects before year-end may now be realizing meaningful tax savings, while those who delayed may find those opportunities closed.
Reviewing eligibility and documentation is an important step early in the 2026 tax cycle.
4. Qualified small business stock
Beyond individual taxpayers, the OBBBA introduced several notable changes for entrepreneurs and business owners, particularly around qualified small business stock (QSBS).
The enhanced $15 million exclusion is now paired with shorter holding periods, allowing for a 50% exclusion after three years, 75% after four years and full exclusion at five years.
This revised structure makes C-corporation formation more attractive for certain founders, especially in fast-growth sectors where liquidity events may occur on an accelerated timeline.
For private equity-backed businesses and early-stage companies eyeing strategic exits, QSBS planning is becoming an increasingly central part of entity-structure discussions.
5. Opportunity zones
Opportunity zones are another area gaining renewed attention as 2026 unfolds. While existing designations sunset at the end of the year, new opportunity zones will take effect beginning January 1, 2027, and the program itself has been made permanent.
For investors anticipating significant capital gains, this creates a rolling planning opportunity.
By reinvesting eligible gains into a qualified opportunity fund (QOF) within 180 days, investors can defer taxes for up to five years.
More importantly, gains on investments held in a QOF for at least 10 years remain permanently excluded from federal capital gains taxes — an especially compelling benefit for long-term investors.
Proactive planning and open communication
Whether the focus is on adjustments already in effect or longer-term strategies that extend well beyond 2026, one theme remains constant: Proactive planning matters.
The most effective tax strategies are the product of ongoing dialogue between advisers and clients, not last-minute decisions made under pressure.
As the OBBBA reshapes key areas of the tax code, staying engaged, revisiting assumptions and implementing thoughtful mitigation strategies can make a meaningful difference.
In an environment defined by complexity and change, maintaining open lines of communication may be one of the most valuable planning tools advisers can offer.
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