TTWO · 10-Q · 2026Q3 · Full report

Tax Law Changes

TAKE TWO INTERACTIVE SOFTWARE INC · 2026-11-09 · Importance 40 · Surprise 42 · In source text

The One Big Beautiful Bill Act (OBBB) was signed into law on July 4, 2025, with provisions taking effect on different dates, including changes to BEAT, GILTI, FDDEI, domestic research deductions, bonus depreciation, and tax credits. Take-Two has incorporated estimated OBBB tax effects into its projected annual effective tax rate and continues to evaluate the law’s impact. The company says the changes could adversely affect its effective tax rate, tax payments, financial condition, or results of operations, and that further interpretive guidance may affect its assumptions and actions.

Key facts

• The One Big Beautiful Bill Act was signed into law on July 4, 2025, and Take-Two says its provisions could adversely affect its effective tax rate, tax payments, financial condition, or results of operations. source
• The American Rescue Plan Act limitation expansion applies to the Company for tax years starting April 1, 2027 and extends the covered group to the next five most highly compensated employees. source
• Take-Two does not estimate any corporate alternative minimum tax liability for the current fiscal year. source
• Pillar Two was not material to Take-Two’s tax provision for the six months ended September 30, 2026; it could create additional tax liability where tax expense is below a 15% minimum rate. source

Impact estimates