Changes To R&D Federal Deduction Explained: How US Innovators Get Major Tax Break In 2025

Changes To R&D Federal Deduction Explained: How US Innovators Get Major Tax Break In 2025, updated 8/22/25, 6:20 PM

The 2025 OBBB Act restores immediate expensing for U.S.-based R&D while foreign R&D requires 15-year amortization. Companies may be able to file catch-up deductions for as much as 14-20% of qualifying expenses as dollar-for-dollar tax reductions. Learn more at https://federaltaxcredits.org/r-and-d/

Federal Tax Credits ORG City: La Center Address: 1315 W E Pl. Website: https://federaltaxcredits.org/

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Changes To R&D Federal Deduction Explained:
How US Innovators Get Major Tax Break In 2025
The federal spending bill passed in 2025 will radically
overhaul the Federal R&D Tax Credit for companies of
all sizes, including those that did not qualify previously.
Additional catch-up deductions
enable companies to claim
domestic R&D expenses
capitalized between 2022-2024,
offering significant tax savings
after the fact.
In order to qualify, your business activities must pass a 4-point test outlined in the official
R&D Tax Credit documentation.
As Federal Tax Credits ORG explains, the timing of
these deductions is key, as they could eliminate
your entire tax bill and impact cash flow for the
rest of the year.
Their team helps businesses identify qualifying R&D
activities, finalize relevant documentation, and submit
the final application in order to maximize tax benefits.
Your R&D activities could translate directly to more money in the bank; contact Federal Tax Credits
ORG to find out if you qualify.

https://federaltaxcredits.org/r-and-d/

Find Out More At https://federaltaxcredits.org/r-and-d/