The One Big Beautiful Bill Just Changed the R&D Game
The OBBBA made some significant changes to the R&D tax credit as follows:
✔️ Full Domestic R&D Expensing (2025–2029)
• 100% immediate deduction for U.S.-based research
• Small businesses (≤ $31M receipts) can retroactively apply to 2022–2024
• Software development costs now clearly qualify as R&D
🌎 Foreign R&D Treatment
• Foreign research costs must be amortized over 15 years
• No immediate expensing available
• Creates a clear advantage for keeping research in the U.S.
📊 Tax Planning Considerations:
• Businesses investing in innovation domestically get a major cash flow advantage.
• Strategic planning is critical — especially for companies with global R&D operations.
• Small businesses that missed deductions in prior years now have a valuable second chance.
This shift makes domestic R&D more attractive than ever. Now is the time to revisit tax strategies and ensure clients are capturing every benefit available.
#TaxPlanning #R&D #Accounting #OneBigBeautifulBill #TaxStrategy

Video Script
New tax legislation just changed the R&D tax game. From 2025 to 2029, U.S. research costs get a 100% immediate deduction. Small businesses under $31 million in revenues can retroactively apply to 2022 to 2024. Foreign research costs must be amortized over 15 years. No immediate expensing. That’s a strong incentive to keep innovation here at home. The result: U.S. businesses see a major cash flow advantage. Strategic planning is critical for companies with global operations. And small businesses get a second chance at deductions. Domestic R&D just got more attractive. This has been a tax saving tip from Accounting Solutions. Book a time to learn more.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.