R&D Tax Credit Insights & Analysis

What Are Cannabis Ancillary Business Ideas?

The R&D Tax Credit for Industrial Hemp

Artificial Intelligence R&D is Booming — Ensure Your Organization is Claiming R&D Tax Credits

AI and ML development from a tax perspective fall under the “Qualified Research Expenses”, helping you claim tax credits on your investments.

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

Inflation Reduction Act & CHIPS Act - How They Affect The R&D Credit

Top Five Misconceptions About Claiming the R&D Tax Credit

Pharmaceutical Companies Reap Significant Tax Benefits: The Orphan Drug Tax Credit

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

The American Innovation and Jobs Act is Good for Business

Landmark Tax Court Ruling Puts R&D Credits at Risk

The U.S. Tax Court’s December 2024 decision in Phoenix Design Group, Inc. v. Commissioner (T.C. Memo 2024-113) is a landmark case for engineering and professional services firms. The court denied R&D tax credit claims and upheld a 20% accuracy-related penalty under IRC §6662, citing insufficient contemporaneous documentation, lack of objective technical uncertainty, and no systematic process of experimentation required under §41(d). This ruling highlights the critical need for audit-ready documentation, activity-level time tracking, and applying the shrinking-back rule to protect R&D credit eligibility.

Maximize R&D Tax Savings with IRS Rev. Proc. 2025-28 and OBBBA

IRS Rev. Proc. 2025-28 implements the One Big Beautiful Bill Act (OBBBA), restoring immediate §174A R&D expensing, simplifying §280C elections, and opening a refund window for 2022–2024 tax years. Small businesses can file amended or superseding returns to recover cash, while larger companies gain streamlined compliance with automatic accounting method changes. This guidance marks a turning point after TCJA’s capitalization rules, offering clarity, cash flow relief, and planning opportunities for innovative taxpayers.

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.