EMN · 10-Q · 2026Q3 · Full report

U.S. Tax Law Changes

EASTMAN CHEMICAL CO · 2026-10-30 · Importance 21 · Surprise 42

Eastman revised its previously issued third-quarter 2025 financial statements for an error involving the newly enacted One Big Beautiful Bill Act (OBBBA) and its impact on income tax provision. The company determined the error was not material to the previously issued statements but revised them to correct it. The revision increased third-quarter 2025 basic and diluted EPS by $0.19 and $0.20, respectively, and increased both basic and diluted EPS by $0.20 for the first nine months of 2025. The filing also says 2026 tax provision reflected OBBBA transitional provisions, primarily concerning deductibility of previously capitalized R&D expenditures.

Key facts

• Eastman recognized an income-tax-related item resulting from enactment of the One Big Beautiful Bill Act (OBBBA), reported as $22 million for third quarter 2026 and $13 million for the first nine months of 2026 in the tax table. source
• Eastman's third-quarter and first-nine-months 2025 income tax provision included a $22 million increase driven by OBBBA. source
• Eastman's third-quarter and first-nine-months 2026 income tax provision included the impact of OBBBA transitional provisions, primarily related to deductibility of previously capitalized research and development expenditures. source