Surgent's OBBBA Rules Relating to Research and Experimental Expenditures

Overview

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.

Delivery Method: Individual webcast
CPE Credit: 2
Program Level: Basic

This course is being offered by a learning partner. You may access the Surgent platform through the My CPE page on vscpa.com after purchase.

Highlights

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

Prerequisites

None

Designed For

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