The strategic landscape for residential and commercial energy taxation shifted fundamentally in July 2025. The enactment of the "One Big Beautiful Bill" (OBBB) introduced a fiscal termination point that few taxpayers anticipated. For residents of San Martin, Morgan Hill, and the greater South Bay, the implications for Energy-Efficiency Upgrades are immediate and binary.

Federal tax laws changed significantly when the One Big Beautiful Bill Act arrived in mid-2025. For families living in San Martin, California, these updates provide immediate financial relief. The SALT deduction cap 2026 now sits at $40,400. This figure represents a major increase from the previous $10,000 limit. Taxpayers in the South Bay often pay high property taxes. These families often see their federal tax liability drop under the new rules.

The team at KY Tax Service & Bookkeeping helps local business owners navigate these complex decisions. We prepared this guide to compare the three most common business structures in California. We will look at liability, cost, and paperwork requirements to help you decide which entity fits your goals.

This guide explains the correct method to secure your deduction. It focuses on the "Accountable Plan." This strategy moves money from your business to your pocket tax-free. It protects you during an audit. It also lowers your California state tax liability.