R&D Tax Credit Update

The new tax bill that is now signed into law will allow innovative businesses to permanently expense 100% of R&D cost. Companies can use the R&D tax credit to generate more tax refunds. Eligible small businesses (under $31M) could fully expense their R&D cost from 2022 – 2024 retroactively.

 New Tax Law Highlights:

 R&D domestic research expenses are now fully deductible under new Section 174A.

 Eligible small businesses ($31M or less) can also fully expense R&D cost retroactively to tax years 2022 and beyond.