Optimizing R&D Deductions under the OBBBA

Kirsch CPA Group

Oct 30, 2025

Among the hundreds of provisions in the One Big Beautiful Bill Act (OBBBA) are changes related to research and development (R&D) expenses.

These changes enable businesses with eligible R&D expenses to recover tax savings from applying a reinstated R&D rule, including retroactive benefits.

Valuable R&D Deductions May Be Available for Your Business

It’s a potentially valuable opportunity for manufacturers, tech companies, and others with eligible research, innovation, and experimentation expenses to recover overpaid taxes —with interest.

Examples of eligible R&D costs include:

  • Product or formula development expenses
  • Process improvement expenses
  • Quality control and testing
  • Equipment testing and modification
  • Software development expenses

Taking advantage of this option, however, is not necessarily a straightforward decision. There are multiple options for how to amend your filings between 2022 and 2024 or going forward. The impact of the rule change for your business depends on individual factors.

Customized Tax Strategies for R&D Deductions

The best strategy is one that aligns with your business goals and tax situation.

While the IRS has extended some deadlines for amended returns, best results for optimizing R&D tax benefits require careful assessment, guidance and compliance, so don’t wait to learn more about whether you should pursue this option.

At Kirsch CPA Group, our strategic tax planning services are designed to minimize tax liabilities over the life of your business with an approach built around a deep understanding of your financial goals. To learn more about how the OBBBA can impact your business taxes, visit our OBBBA resource page, or contact Kirsch CPA Group team members Sue Schloemer and Jared Weyler.

Schedule an appointment to learn how we can support you

 

About The Author

Kirsch CPA Group is a full service CPA and business advisory firm helping businesses and organizations with accounting,…

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