R&D Tax Credit Insights & Analysis

Senate Approves OBBBA with Section 174 R&E Relief

The U.S. Senate has passed the One Big Beautiful Bill Act (OBBBA), delivering retroactive Section 174 R&E tax relief for small and medium-sized enterprises (SMEs). This landmark legislation allows qualifying businesses to immediately expense domestic research and experimental costs back to 2022, potentially unlocking millions in tax savings and boosting innovation. The bill now moves to the House of Representatives, where its retroactive relief provisions will be debated. SMEs are encouraged to consult tax experts, monitor legislative updates, and use StrikeTax’s R&D Tax Credit Calculator to maximize benefits. For ongoing updates and expert guidance, visit StrikeTax.com.

Section 174 Amortization Repeal in 2025: Boosting R&D Tax Credits

As of March 05, 2025, the end of Section 174 amortization is plausible but not locked in. Monitor the Ways and Means Committee’s work this Spring—draft text could drop by May 2025. Prep for two scenarios: a 2026 start (plan cash flow accordingly) or a 2022 retroactive win (audit past returns and prepare to amend).

Application of the 4 Part Test to Software Development

Software is one of the most common industries that qualify for the R&D Tax Credit filed annually. IRS has very specific standards for what qualifies as research and development, hence it is crucial to first understand the Four-Part Test and how it applies to software development.

A Brief Explanation for Section 280C Election

Claim 2021 R&D Tax Credits Before the Deadline

Time is running out to claim your 2021 R&D tax credits before the 2025 deadline! These credits can reduce tax liabilities, improve cash flow, and support innovation, but after the deadline, the opportunity will be gone. The good news? Section 174 amortization rules don’t apply to 2021 claims, allowing businesses to fully deduct R&D expenses. Eligible activities include software development, prototyping, testing, and more. Act now to secure these valuable tax savings and ensure your business stays competitive!

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.

Many Startups Are Leaving Money on the Table

Patent Safe Harbor: Removing Uncertainty from R&D Tax Credit Claims

An Incredible Tax Saving Opportunity I Discovered While Running My Tech Firm

While I have directed the development of numerous internal-use applications, SaaS, and software for sale/lease/license. I only became aware of the federal and state R&D credits a little over a year ago. I am willing to make this admission to help other companies realize the untapped pocket of funds available to help fuel growth and innovation.