The tax landscape for businesses investing in domestic innovation has shifted dramatically in 2025. These changes present both opportunities and compliance challenges – here’s a breakdown of key updates.
Restoration of Immediate R&D Expense Deductions
Under the new One Big Beautiful Bill Act, domestic research and experimentation (R&E) expenditures can once again, be fully deductible in the year incurred, thanks to the enactment of Section 174A. This reverses the post-TCJA requirement (effective 2022) that domestic R&D costs can be capitalized and amortized over five years – a change that increased the after-tax cost […]