TTWO · 10-Q · 2026Q2 · Full report

Tax Law Changes

TAKE TWO INTERACTIVE SOFTWARE INC · 2026-08-07 · Importance 44 · Surprise 60 · In source text

The One Big Beautiful Bill Act, signed into law on July 4, 2025, changes U.S. international tax provisions, research-expense deductions, bonus depreciation, and tax credits. Take-Two incorporated estimated OBBB effects into its projected fiscal-year 2027 effective tax rate but continues to evaluate the law because future interpretive guidance could change its assumptions. Management warns that the legislation could adversely affect the company’s effective tax rate, tax payments, financial condition, or results of operations.

Key facts

• The One Big Beautiful Bill Act (OBBB) was signed into law on July 4, 2025 and includes permanent extension of certain TCJA provisions, modifications to BEAT, GILTI and FDDEI, reinstatement deduction for domestic research expenditures, 100% bonus depreciation for certain qualified property, and modifications to tax credits. source
• The Inflation Reduction Act includes a 15% corporate alternative minimum tax (CAMT) on adjusted financial statement income for corporations with average AFSI exceeding $1.0 billion over a consecutive three-year period; the Company does not estimate any CAMT liability for the current fiscal year. source

Impact estimates