R&D Tax Credits and OBBBA: Five Costly Mistakes to Avoid When Filing Retroactive Claims
Frequently Asked Questions
Not any longer. The election window, the earlier of July 6, 2026 or the Section 6511 statute of limitations, has closed. Remaining capitalized amounts can be recovered through the catch-up deduction starting with 2025 returns.
No. Options include: (1) continuing amortization, (2) accelerating remaining costs into 2025/2026, or (3) retroactive expensing if qualified. The optimal choice depends on profitability and credit utilization.
No retroactive election is available, but you can use catch-up acceleration for 2022-2024 unamortized domestic costs. Full expensing applies starting 2025.
Section 174A is permanent. Unlike earlier legislative proposals that included sunset provisions, the enacted OBBBA made domestic R&D expensing permanent.
Small businesses could make late 280C(c)(2) elections or revocations on amended returns during the one year window that ran from July 4, 2025 through July 6, 2026. July 4, 2026 fell on a Saturday, so the deadline rolled to Monday, July 6. That window has closed.
No, Section G is optional for tax year 2025. It becomes mandatory in 2026 with exceptions for QSB payroll credit filers and taxpayers with QREs ≤$1.5M and gross receipts ≤$50M.
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