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The 2025 tax law’s restoration of 100% bonus depreciation is providing major technology companies with significant upfront tax benefits as they invest heavily in AI infrastructure. Microsoft’s current federal tax expense, for example, fell from $14.1bn to $2.5bn year over year despite rising revenue, illustrating how accelerated deductions can help companies retain cash while funding data centers and other capital investments. Andrew Leahey, an assistant professor at Drexel Kline School of Law, argues that these tax incentives should not be credited with creating the AI investment boom. Microsoft announced plans to spend roughly $80bn on AI data centers six months before the tax law was signed, while competitive pressure is already pushing major technology companies to expand computing capacity. Accelerated depreciation may influence the timing, scale, or location of investments, but it also carries a public cost by delaying federal tax revenue. Mr. Leahey calls on the Treasury Department and Joint Committee on Taxation to quantify how much investment is genuinely generated by accelerated deductions, how much is simply brought forward, and how much would have occurred regardless.

 

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Home Depot chief executive Ted Decker will take a temporary medical leave and is expected to return within the next few months, with senior executive vice-president Ann-Marie Campbell taking responsibility for day-to-day operations and chief financial officer Richard McPhail overseeing financial management and its professional contractor subsidiaries. Mr Decker, who has led Home Depot since 2022, has been navigating a prolonged U.S. housing market slowdown as high borrowing costs weigh on home-improvement spending, while the retailer continues to expand its business serving professional contractors. 

 

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The Los Angeles City Council has approved the Enhanced City Resources Master Agreement, which outlines the reimbursement process for services provided during the 2028 Summer Olympic Games. Despite a 10-4 vote in favor, some council members expressed concerns about potential financial risks, warning that taxpayers could face up to $1bn in costs if the organizing committee, LA28, suffers significant losses. Councilmember Monica Rodriguez said: “This fails to provide any safeguards for Los Angeles taxpayers and most assuredly risks the City's fiscal stability.” The agreement allows the city to access a $270m contingency fund from LA28, but critics argue that the protections are insufficient. City Controller Kenneth Mejia emphasized the need for transparency and accountability, saying: “We're already locked into a huge financial liability.” The council is set to negotiate further on service costs leading up to the Games.

 

Los Angeles Times

Apple has appointed American Airlines veteran Nate Gatten as vice president of government affairs from August 31st, putting him in charge of its global engagement with governments and policymakers as the company navigates tariffs and other policy challenges. Mr Gatten, who has led government affairs at American Airlines for nearly a decade and previously held a similar role at JPMorgan Chase, is expected to work closely with Tim Cook. The appointment forms part of a broader leadership transition at Apple, with Kate Adams remaining as an adviser until her retirement on October 1 and current government affairs head Nick Ammann reporting to Mr Gatten. Mr Cook is also set to hand the chief executive role to hardware chief John Ternus on September 1 while remaining executive chairman. 

 

Bloomberg

AICPA has urged the U.S. Treasury Department and IRS to simplify and clarify recent Corporate Alternative Minimum Tax (CAMT) guidance, arguing that unresolved issues are creating unnecessary compliance burdens and potential double counting of income. Key recommendations include withdrawing purchase accounting and push-down accounting adjustment rules, providing clearer treatment of domestic research and experimental expenditures and intangible drilling costs, and addressing double counting involving Controlled Foreign Corporations. The AICPA also proposed allowing consolidated groups to calculate CAMT at the tax consolidated group level and file a single Form 4626, saying greater clarity would improve consistency, reduce disputes, and better align the framework with its statutory intent.

 

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U.S. consumer prices rose 0.1% in July, in line with expectations, bringing annual inflation down to 3.4% from 3.5% in June. Core CPI, which excludes food and energy, increased 0.2% for the month and 2.5% year over year, while energy prices declined 1.5%, helping offset increases in medical care, airfares, and vehicle prices. The moderate inflation data, combined with renewed concerns about the labor market, has reduced expectations for an imminent Federal Reserve rate increase, with markets putting the probability of a September hike at 42%. The Fed will receive another month of inflation data before its September meeting, with policymakers expected to keep rates unchanged unless price pressures strengthen materially. “The economy isn’t out of the woods from the threat that inflation poses for everyday Americans, but price pressures aren’t hot to the touch either,” commented Chris Rupkey, chief economist at Fwdbonds, a financial research firm.

 

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The U.S. federal budget deficit widened to a record $432bn in July, up $141bn, or 48%, from a year earlier, as government spending increased and tariff refunds weighed on receipts. Adjusting for calendar-related shifts in benefit payments, the deficit was $333bn, an 18% year-over-year increase. Outlays rose 22% to a July record of $766bn, while receipts fell 1% to $334bn. Net customs receipts were negative for a third consecutive month, with $33.38bn of tariff refunds following the Supreme Court’s decision to strike down the Trump administration’s broad emergency tariffs. The deficit for the first 10 months of fiscal 2026 reached $1.799tn, already exceeding the $1.775tn deficit recorded for the whole of fiscal 2025, with two months remaining in the current fiscal year. 

 

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U.S. small business confidence strengthened in July, with the National Federation of Independent Business’ optimism index rising to 99.8, its highest level since August 2025 and above economists’ expectations of 97. Hiring intentions improved sharply, with a seasonally adjusted net 20% of business owners planning to create jobs over the next three months, up 9 percentage points from June and the highest level since October 2022. Inflation pressures also eased, as actual and planned price increases declined, while fewer businesses cited inflation as their most important problem. Labor quality and availability replaced inflation as the top concern, even as uncertainty remained elevated and businesses anticipated improving conditions.

 

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Eli Lilly has filed six lawsuits against U.S. companies it accuses of illegally selling black-market versions of its experimental obesity drug retatrutide. The drug is still being studied in clinical trials and has not yet been approved by the Food and Drug Administration as safe and effective. CBS News reports that while federal law prohibits the commercial sale of unapproved drugs, many telehealth firms, clinics and peptide vendors online have decided to nevertheless offer the next-generation drug."This [illicit market] is a global problem and it's an enormous one," observed Max Denning, an associate vice president at Eli Lilly. He has urged regulators, social media companies, payment processors and others to help stem illicit sales of retatrutide. "Six lawsuits is not going to be the solution to everything, but it is a start," he said. Lilly’s lawsuits target the entities known as Aesthetic Envy, Astra Peptides, Legendary Peptides, Striker Pharmacy, Texas Peptides and Lone Star Peptide. They are filed in courts in California and Texas.

 

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Most businesses adopting AI may not qualify for research credits, but exceptions exist. Chea Romine, CPA, emphasizes that many clients, such as distributors and insurance agencies, are engaging in activities that could qualify under Section 41. However, documentation is crucial, as evidence tends to diminish after project completion. Mr. Romine highlights the importance of distinguishing between configuring and building AI solutions, as only the latter may qualify for credits. Additionally, the qualified small business payroll offset is capped at $500,000 per year for five years, with specific eligibility criteria. Romine advises practitioners to integrate AI project discussions into their planning and to screen clients early to identify potential credit opportunities.

 

CPA Practice Advisor

Crowe has completed the sale of a stake in the accounting firm to private equity group KKR, with the investment intended to accelerate its growth strategy and support further spending on talent, technology, and innovation. Following the transaction, Crowe Advisory LLC will provide tax, advisory, and other non-attest services, while Crowe LLP will remain a licensed CPA firm providing audits, reviews, and other attest services. Crowe, the 12th-largest U.S. accounting firm by revenue, said the partnership will expand its reach and capabilities while maintaining its existing focus on quality and client service.

 

CPA Practice Advisor

A Reuters/Ipsos poll suggests that most Americans support more government rules for how ​social media companies conduct business. Some 61% of poll respondents - 71% of Democrats and 62% of Republicans - said social media companies require firmer oversight; meanwhile, 66% support laws that would make social media companies use age-verification tools to keep children under age 16 from accessing their platforms. 

 

Reuters

The SAP Value of AI Report 2026 reveals that while 89% of Singapore businesses believe agentic AI can transform their operations, only 2% are fully prepared to implement it. The report, conducted by SAP and Oxford Economics, surveyed 2,600 leaders across 13 countries, including 200 in Singapore. Businesses expect AI returns to rise significantly, yet many lack dedicated AI leadership and training. Liher Urbizu, president of SAP Southeast Asia, emphasised the need for strong data governance and business processes to unlock AI's full potential, saying: "Only by investing broadly in our data foundations, governance and quality will we ensure successful AI outcomes."

 

Business Times SG

Michael Ebeid has been appointed as the new chair of KPMG Australia for a three-year term. This follows allegations against the previous chair regarding misleading an inquiry into whistleblower claims. Ebeid, who also chairs Screen Australia, is the firm's first independent chair. KPMG Australia said it aims to enhance its corporate governance in light of the recent scandal.

 

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