OBBBA Restores Immediate R&E Deductions: IRS Issues Transition Guidance!

The One Big Beautiful Bill Act (OBBBA) reinstates immediate deductions for domestic research and experimental (R&E) costs beginning in 2025. The IRS has issued transitional guidance (Revenue Procedure 2025-28) on the change. Among many other things, the guidance explains the procedures for how, if you began to amortize R&E expenses in 2022, 2023 and/or 2024, you can deduct the remaining amount on your 2025 return or split it between your 2025 and 2026 returns, rather than continuing to amortize over what remains of the five-year period. Read the guidance: https://bit.ly/3HXdz2g. Contact us if your business incurs R&E expenses and you’re unsure if you qualify for the deduction.