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๐จ Will Congress Fix R&D Expensing in 2025? ๐จ
๐จ Will Congress Fix R&D Expensing in 2025? ๐จ
Businesses investing in R&D have been struggling since 2022, when full expensing was replaced with mandatory 5-year amortization (15 years for foreign R&D). The result? Higher taxable income, cash flow issues, and reduced innovation incentives.
Thereโs bipartisan support to bring back full expensing, but with broader tax negotiations ahead in 2025, the future remains uncertain.
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Best Case: Full expensing returns
โ ๏ธ Middle Ground: Partial deductions
โ Worst Case: Amortization stays
For now, businesses should plan for uncertainty, maximize R&D tax credits, and stay engaged in policy discussions.
