If your business spends money improving products, processes, or software - good news! Recent tax law changes mean you could deduct more of your research and development (R&D) costs right away, instead of waiting years to write them off.

What’s new

A new section of the tax code now allows businesses to immediately deduct the full amount of qualifying U.S.-based research expenses.
In other words - if your innovation happens here at home, you may be able to take the full deduction now, boosting your cash flow and lowering your current tax bill.

Previously, businesses had to spread these costs out over several years through amortization. That rule still applies for research done outside the U.S., but for domestic work, the new rule is a big win.

Why it matters

Immediate deductions mean more money stays in your business today. Whether you’re a pharmacy improving operations, a manufacturer testing new processes, or a small business investing in technology, these savings can make a real difference.

Even better - if you’ve been amortizing R&D costs from the last few years, there may be a way to catch up and claim more deductions now.

What to do next

This change opens new opportunities, but how you apply it depends on your situation.
It’s important to:

• Confirm what qualifies as “research and experimental” spending

• Separate U.S. based work from overseas work

• Decide whether taking the deduction now or spreading it out makes the most sense for your business

Our team can help you review your past and upcoming expenses to make sure you’re getting the full benefit - without missing any key steps or creating headaches down the road.