Description

The One Big Beautiful Bill Act (OBBBA) made very favorable taxpayer changes to Section 174, which determines the tax treatment of research and experimental (R&E) expenses. OBBBA allowed for the immediate deduction of domestic R&E expenses through the introduction of a new Section 174A and provides mechanisms for transitioning from the recent five-year amortization schedule to an immediate deduction for domestic R&E expenditures. The OBBBA changes offer tax saving opportunities through these R&E expenditures.

Instructor: Mike Tucker, Ph.D., LL.M., J.D., CPA

Target Audience

Accounting and finance professionals who will be advising clients regarding R&E expenses

Course Objectives

Explain the new OBBBA rules relating to this important topic

Take advantage of R&E tax savings

Subjects

Eligible expenses for the credit

What activities do not qualify for the credit?

Differences between credit and deduction

Revenue Procedure 2025-28

Immediate deductions starting January 1, 2025

Deducting domestic R&E paid or incurred in tax years beginning after December 31, 2021, and before January 1, 2025

Making an election to amortize domestic expenditures

Elections a small business taxpayer can make

Options for treating previously capitalized expenditures

Interaction with the research credit

Changing accounting methods

Short tax year ending before July 4, 2025