The October 15 tax deadline has passed, but your opportunity to benefit from the R&D Tax Credit is far from over. This year brought a major legislative shift: the One Big Beautiful Bill Act (OBBBA), which changed how businesses handle R&D expenses and created new planning opportunities.

OBBBA: What Changed and Why It Matters

For the last 3 years, companies were required to capitalize and amortize domestic R&D expenses over five years (and foreign research over fifteen), creating cash flow challenges. OBBBA reversed that rule. Starting with tax years beginning after December 31, 2024, businesses can fully deduct domestic R&D expenses in the year incurred. This change improves liquidity and simplifies compliance, making innovation more financially attractive.

Other key updates:

Retroactive relief: Businesses with less than $31 million in revenue can amend returns for 2022–2024 to claim missed deductions
Transition rule: All businesses that can elect to recover their remaining 2022-2024 amortized domestic R&D expenditures either in 2025 or ratably across 2025 and 2026.
Software development remains eligible under Section 174.
Foreign research still requires 15-year amortization.

These changes make 2026 a critical year for tax planning.

Deadlines You Can’t Miss

Even if you missed the October deadline, there are still multiple ways to benefit from the R&D tax credit and the OBBBA changes.

April 15, 2026: File your 2025 tax return and claim R&D credits under the new rules.
Amend Past Returns: Eligible businesses can still amend 2024, 2023, and 2022 returns to recover missed benefits.
Quarterly Estimated Payments: While annual filings are the priority, companies, especially large corporations, can still use the R&D Tax Credit to reduce quarterly tax payments by tracking eligible activities throughout the year.

Why Act Now

The combination of OBBBA’s immediate expensing and the R&D Tax Credit creates a powerful opportunity to improve cash flow and reduce tax liability. FI Group helps businesses:

Identify qualifying activities
Document and calculate eligible expenses
Prepare audit-ready reports
Support amended filings and quarterly applications

Case Study: Real Savings in Action

A mid-sized U.S. manufacturer partnered with FI Group in early 2025. By implementing real-time R&D tracking and amending prior returns, they:

Reduced quarterly payments by an average of $120,000
Recovered $400,000 in retroactive credits for 2023 and 2022
Improved liquidity for reinvestment in innovation

Get Ahead of the 2026 Tax Season

Now is the time to:

Review your 2025 activities
Prepare documentation early
Explore retroactive claims for 2024, 2023, and 2022
Plan for quarterly optimization if applicable

Ready to see how much you could recover? Schedule a free consultation today and let FI Group help you make the most of the R&D Tax Credit.

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