R&D Tax Credit Insights & Analysis

Debunking Section 174 Amortization Myths: Avoid R&D Tax Pitfalls

The One Big Beautiful Bill Act (OBBBA), signed into U.S. law on July 4, 2025, repeals Section 174 amortization for domestic R&D expenses, restoring immediate expensing starting in 2025. This change boosts cash flow, strengthens the value of Section 41 R&D tax credits, and supports U.S. businesses investing in innovation. But myths are spreading—about retroactive refunds, foreign R&D, software development, audits, and double-dipping under Section 280C. In this blog, Strike Tax Advisory debunks the top misconceptions, explains who qualifies for retroactive expensing (including the $31M small business threshold), and shows how startups and established companies can maximize credits, deductions, and hiring potential under OBBBA. If you’re searching for clear answers on “OBBBA Section 174 repeal,” “R&D tax credit myths 2025,” or “how to claim retroactive R&D deductions,” this guide breaks it down step by step.

Did You Skip R&D Tax Credits in 2022-2024? Now is the time to reverse that decision.

Many companies skipped R&D tax credits in 2022–2024 due to Section 174 amortization. Learn how the retroactive law change allows amended returns, potential refunds, and key deadlines before they expire.

Does Amending for R&D Credits Trigger an IRS Audit? What the Evidence Says

Effective 1/10/2022 - New Changes to R&D Tax Credit Documentation

ERC & PPP Loans: Can I Claim Both?

Game-Changing Tax Reform Ahead? What Every American Business Owner Should Know About R&D Tax Changes

Recent Republican political victories create potential for changes to Section 174 R&D tax treatment. Currently, businesses must capitalize/amortize costs over 5/15 years. Reform could reintroduce immediate expensing, improving cash flow and competitiveness. However, any changes depend on the legislative process and broader economic priorities. Businesses should monitor developments, consult experts, review R&D strategies, and maintain documentation to prepare.

GENIUS Act and Its Role in Blockchain R&D Tax Credits

The GENIUS Act, signed into law in July 2025, establishes the first federal framework for stablecoins, requiring 1:1 dollar or Treasury backing, transparency, and regulated issuers. For blockchain and Web3 companies, this reduces uncertainty and aligns with the repeal of Section 174 amortization, which restores immediate expensing of U.S.-based R&D costs. Together, these changes create powerful opportunities to claim R&D tax credits. Startups may offset up to $500,000 in payroll taxes annually, while larger firms can recover a portion of development spend. Eligible activities include smart contract development, scalability experiments, custody integrations, DeFi protocols, and enterprise pilots. With regulatory clarity and financial incentives combined, the U.S. is now one of the most favorable jurisdictions globally for blockchain R&D.

House Passes OBBBA, Reinstates Immediate R&D Expensing

The U.S. House has passed the One Big Beautiful Bill Act (OBBBA), officially repealing Section 174 amortization and restoring immediate expensing for domestic R&D costs. This landmark change means small businesses (with under $31 million in annual gross receipts) can retroactively amend 2022–2024 tax returns to claim full deductions and receive refunds for previously amortized R&D expenses. Larger businesses can accelerate remaining deductions in 2025 and 2026. Foreign R&D costs must still be amortized over 15 years. With immediate expensing back, the Section 41 R&D Tax Credit becomes more valuable, unlocking significant cash flow and refund opportunities for innovative companies. Businesses should act quickly to amend returns and maximize their tax benefits under the new law.

How Multiple Entities with Common Ownership Can Benefit from R&D Tax Credits

How Other Tax Credits Are Affected If You Took the ERTC

How Your Git Records Can Streamline R&D Tax Credit Claims

Impact of IRC §280C Elections for R&D Tax Credit Claimants After OBBBA

Understand the tax impact of making a §280C election when claiming the federal R&D tax credit. With the 2025 OBBBA reform and §174A expensing restored, businesses must carefully weigh the benefits of the reduced-credit election versus the gross credit with add-back. This guide breaks down compliance rules, real-world examples, and how to maximize federal and state tax benefits.