By Benjamin Young, CPA
As the One Big Beautiful Bill Act (OBBBA) takes full effect in 2026, small business owners in Provo and throughout Utah County face a transformed tax landscape. This legislation has made many once-temporary provisions permanent, offering a level of stability that allows for aggressive, long-term financial planning.
1. Permanent Gains: The 20% QBI Deduction
One of the most significant wins for Utah pass-through entities (LLCs, S-Corps, and Partnerships) is the permanent extension of the 20% Qualified Business Income (QBI) deduction. This deduction remains a cornerstone for reducing taxable income for local service providers and consultants.
2. Aggressive Expensing: Section 179 and Bonus Depreciation
For 2026, 100% Bonus Depreciation has been permanently restored, allowing businesses to fully expense qualifying equipment in the year it is placed in service. Additionally, Section 179 expensing limits have doubled to $2.5 million, providing massive tax-shield opportunities for equipment-heavy industries in the Provo corridor.
3. Reporting Threshold Shifts (1099-NEC and 1099-K)
Compliance requirements have eased slightly for those working with contractors. The 1099-NEC reporting threshold has increased to $2,000, and the 1099-K threshold for digital payment platforms now sits at $20,000 and 200 transactions.
4. Utah County Local Considerations
Utah continues to maintain a competitive flat income tax rate of 4.5%. For Provo businesses, remember that the SALT deduction limit has increased to $40,000 for 2026, offering significant relief for those with higher local property or sales tax burdens.
About the Author Benjamin Young, CPA, is a Financial Controller and specialized tax consultant based in Provo, UT. As the founder of Square the Books, Benjamin provides audit-ready oversight and strategic tax planning for organizations throughout Utah County. He is a member of the UACPA Pipeline Committee and a Major in the U.S. Army Reserve.