The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, a legislative development that makes 100% bonus depreciation on qualified property permanent. This act is expected to have a significant positive impact on PROG Holdings' financial operations.
The permanence of 100% bonus depreciation will allow PROG Holdings to immediately expense lease merchandise for tax purposes. This change is projected to substantially reduce future cash taxes, thereby enhancing the company's cash flow.
This legislative change is a material benefit for the company, as it defers tax payments without affecting GAAP financial tax rates. The increased cash flow provides greater financial flexibility for strategic investments and capital allocation.
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