The federal corporate tax rate faces genuine legislative risk of an increase to 25% or 28% between 2026 and 2028.No legislation has passed as of this publication date.Specifically, Congressional proposals to fund extensions of expiring TCJA individual provisions repeatedly identify a corporate rate increase as the primary revenue-raising mechanism.This structurally links the two issues under budget reconciliation rules. Consequently, corporations must model the financial impact of both a 25% and 28% business income tax rate before finalizing long-range capital allocation decisions. Furthermore, even if the rate increases, existing credits — R&D, clean energy, advanced manufacturing — would reduce effective rates below the new statutory level.Well-advised corporations would likely maintain effective company profit tax rates in the 15–22% range even at a 28% statutory rate.