Understanding the restoration of expensing domestic Section 174 R&E costs
The One, Big, Beautiful Bill (OBBB) included a significant change to domestic research and experimental (R&E) expenditures under Section 174. In recent years, taxpayers were required to capitalize and amortize R&E expenditures. Now, the OBBB provides the option to return to deducting domestic R&E expenditures in the year paid or incurred. Importantly, transition rules have...

