PAYC · 10-Q · 2026Q2 · Full report
US Tax Law Changes
Paycom Software, Inc. · 2026-08-06 · Importance 40 · Surprise 42 · In source text
The One Big Beautiful Bill Act, H.R. 1, was signed into U.S. law on July 4, 2025 and amended the federal tax code. The law permits immediate deductions for domestic research and development expenditures and reinstates 100% bonus depreciation. Paycom said these provisions reduced cash tax remittances during the second half of 2025 and first half of 2026, favorably affecting operating cash flow, with benefits expected to continue at a lower level in future periods.
Key facts
- OBBBA (H.R. 1) signed into law July 4, 2025 allows immediate deduction for domestic R&D expenditures and reinstates 100% bonus depreciation, which reduced cash tax remittances during second half of 2025 and first half of 2026 and is expected to continue to provide a benefit in future periods. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | realized | — | OBBBA (H.R. 1) signed into law July 4, 2025 allows immediate deduction for domestic R&D expenditures and reinstates 100% bonus… |
| cash | positive | probable | — | OBBBA (H.R. 1) signed into law July 4, 2025 allows immediate deduction for domestic R&D expenditures and reinstates 100% bonus… |