July 8, 2025
The current tax landscape for research-focused businesses is defined by a significant and burdensome statutory mandate that has constrained cash flow and complicated financial planning since 2022. This regime, a stark departure from decades of established tax policy, was introduced by the Tax Cuts and Jobs Act of 2017 (TCJA) and has been the subject of intense legislative debate ever since.
In response to the significant economic pressures created by the TCJA's R&E amortization mandate, Congress has advanced the One Big Beautiful Bill Act (OBBBA). This comprehensive legislation contains provisions aimed directly at reversing the TCJA's changes and restoring a more favorable tax environment for innovation. The centerpiece of this effort is the introduction of a new statutory section designed to bring back immediate expensing for research costs.
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