November 13, 2025
A significant business provision in the Big Beautiful Bill restores immediate expensing for domestic research and development (R&D) costs through 2028. Here’s what that means for you:
- R&D costs can now be fully deducted in the year incurred
- Previously, these expenses had to be amortized over five years (or fifteen for foreign R&D)
- This change can provide a major cash flow advantage for companies investing in product development, process improvement, or software creation
If your business engages in innovation or process improvement — even if it’s not traditional “lab research” — these costs may qualify.
We’ll review your operations and expenses during your next planning session to ensure we’re maximizing the benefit while this rule is in effect.
If you have any questions, please feel free to reach out to our team!
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