JKHY · 10-K · 2026A · Full report

U.S. Tax Law Changes

JACK HENRY & ASSOCIATES INC · 2026-08-28 · Importance 18 · Surprise 24

The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025, changing U.S. federal income tax law. Key provisions restore permanent immediate expensing for domestic R&D expenditures, allow deductions for previously capitalized domestic R&D balances, and reinstate 100% bonus depreciation for qualified property placed in service after January 19, 2025. Jack Henry says the law did not materially affect its fiscal 2026 effective tax rate and is not expected to have a material impact in future periods, but it significantly reduced cash tax payments and income taxes payable in fiscal 2026.

Key facts

• The One Big Beautiful Bill Act was enacted on July 4, 2025, restoring immediate expensing for domestic R&D, allowing deductions for previously capitalized domestic R&D, and reinstating 100% bonus depreciation for qualifying property placed in service after January 19, 2025. source
• The OBBBA provisions resulted in a significant reduction in Jack Henry & Associates' cash tax payments and income taxes payable in fiscal 2026, as well as a decrease in deferred tax assets. source
• Jack Henry & Associates said the OBBBA did not materially affect its effective tax rate in fiscal 2026 and is not expected to materially affect future periods. source