How Fashion, Tech Can Maximize New Small Biz Tax Breaks

Olshan tax associate Aime Salazar published an article in Law360 (subscription required) entitled “How Fashion, Tech Can Maximize New Small Biz Tax Breaks.” In the article, Aime emphasizes the need for small businesses, especially those in the fashion and technology sectors, who invest significantly in innovation to prioritize “qualified small business stock” (QSBS), research and experimental (R&E) expensing, and bonus depreciation changes under the One Big Beautiful Bill Act (OBBBA). She explains the tax incentives, common pitfalls and ways businesses can maximize tax efficiency with experienced counsel who can assist with reviewing a business’ tax attributes and assets. “The expanded QSBS and R&E expensing benefits under OBBBA provide new opportunities for existing small business owners to realize new value in their enterprise and bigger gains on their investment,” Aime explains. “Structuring for these benefits involves a commitment to navigating evolving provisions to ensure that owners have a chance at realizing the full potential of these benefits.” She provides guidance on eligible capital gain exclusions, R&E tax incentives from tax credits to expensing considerations, and bonus depreciation. She also explains structuring considerations for new and existing businesses, disregarded entities, partnerships, and S and C corporations to determine QSBS eligibility and insights on restructuring to qualify for expanded QSBS benefits and R&E expensing changes under OBBBA. “These enhancements can significantly reduce taxable income and improve after-tax cash flow for middle market businesses, freeing up capital for reinvestment or other strategic uses,” Aime notes. “The OBBBA, signed into law on July 4, 2025, expands several tax incentives intended to encourage investment in U.S. small businesses…[which] presents a special opportunity to unlock value in their enterprise.”