Entity Setup

Profiting from the One, Big, Beautiful Bill: Entity Setup & Incentives for Investors

Discover how the One, Big, Beautiful Bill reshapes depreciation and opportunity zones—and how your entity could benefit with strategic setup.

By NomadicTax Research Team • 5-8 min read • May 25, 2026

## The New Entity Incentives Landscape Under OBBB The One, Big, Beautiful Bill (OBBB) introduces game-changing benefits: expanded Opportunity Zones and special depreciation allowances for **qualified production property**. Knowing how to structure or reposition your entity to capture these incentives could mean major tax savings. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-guidance-to-states-for-nominating-census-tracts-as-qualified-opportunity-zones-under-the-one-big-beautiful-bill?utm_source=openai)) ### Opportunity Zones: Long-Term Capital Gains Deferral and Tax-Free Growth Under OBBB: - Opportunity Zones are **permanently renewed and strengthened**, offering investors and entrepreneurs certainty around capital investment in distressed or underserved communities. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-guidance-to-states-for-nominating-census-tracts-as-qualified-opportunity-zones-under-the-one-big-beautiful-bill?utm_source=openai)) - States now have updated guidance to nominate census tracts as QOZs—important if your entity operates in a state that hasn’t maximized zone designation. This could affect where you base operations for emerging investments. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-guidance-to-states-for-nominating-census-tracts-as-qualified-opportunity-zones-under-the-one-big-beautiful-bill?utm_source=openai)) ### Special Depreciation Allowance for Qualified Production Property OBBB provides: - A **100% special depreciation allowance** for qualified production property placed in service between **July 4, 2025 and January 1, 2031**. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-special-depreciation-allowance-for-qualified-production-property-announce-upcoming-proposed-regulations-under-the-one-big-beautiful-bill?utm_source=openai)) - Qualified production property includes nonresidential real property involved in manufacturing, agricultural production, refinement, etc.—provided the property is integral to a qualified production activity. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-special-depreciation-allowance-for-qualified-production-property-announce-upcoming-proposed-regulations-under-the-one-big-beautiful-bill?utm_source=openai)) - Entities can elect to treat property as qualified production property and may need to adjust depreciation recapture if requirements change or property ceases to qualify. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-special-depreciation-allowance-for-qualified-production-property-announce-upcoming-proposed-regulations-under-the-one-big-beautiful-bill?utm_source=openai)) ## Entity Setup Strategies to Maximize Incentives - **Evaluate location**: if your business is forming in a new state or expanding, prioritize states actively nominating QOZs. Being in an Opportunity Zone can unlock bonus tax perks for capital gains rolled into Qualified Opportunity Funds. - **Choose entity type wisely**: Corporations, partnerships, and LLCs each have different depreciation mechanics. If electing bonus depreciation under § 168(k), make sure your entity structure allows the election. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-special-depreciation-allowance-for-qualified-production-property-announce-upcoming-proposed-regulations-under-the-one-big-beautiful-bill?utm_source=openai)) - **Document QPA election**: To claim 100% depreciation allowance, make the necessary election when placing property in service—and keep records proving activity qualifies. Any change might trigger recapture. ## Examples - A small manufacturing startup in Georgia invests in a facility costing $1 million on **nonresidential real property** used in the production process in a QOZ. It places this property in service in **August 2025**. The business could immediately write off the full basis under the special depreciation allowance. - A venture capital firm invests in a tech-related Opportunity Zone fund—since zones are now permanently renewed, the entity gains stability in tax treatment for long-term capital gains deferral. ## Actionable Takeaways - If you're planning equipment purchases or real property investment, time placing in service between **mid-2025 and the end of 2030**. - Review state QOZ designation status; engage with state agencies before making location-based investments. - Talk to a tax professional about how your entity’s structure impacts depreciation, recapture, and being eligible for Opportunity Zone incentives. ——— With proactive strategy and correct entity structuring, the OBBB creates unique windows for tax savings. Take care to document, understand definitions, and align your operations to benefit fully.