The treatment of research and experimental (R&E) expenses is a high-stakes topic for businesses, especially small to midsize companies focused on innovation. Currently, R&E expenses must be capitalized and amortized over five years for domestic activities and 15 years for foreign activities. The One, Big, Beautiful Bill, which is now being considered by the Senate, would restore the immediate deductibility of R&E expenses. Specifically, it would allow taxpayers to immediately deduct domestic R&E expenses paid or incurred in tax years beginning after Dec. 31, 2024, and before Jan. 1, 2030. Contact us if you have questions about how these potential changes could affect your business.
