Research and Development (R&D) Tax Credit at SK Tax Addison
The R&D Tax Credit is a valuable incentive for U.S. companies investing in innovation, especially in IT, manufacturing, and research. Businesses can claim credits for up to four years; for example, one of our IT clients with 25 employees claimed $200,000 for 2024. This credit helps improve cash flow, allowing companies to reinvest in research, hire new staff, and drive growth.
At SK Tax Addison, our team of CPAs is dedicated to helping you maximize your R&D tax credits. We assist in identifying eligible expenditures and navigating the filing process to ensure you receive the maximum benefits. With extensive experience in processing over half a billion dollars in grants and tax credits, we can support your business effectively. If you’re interested in our services, visit us in Hoffman Estates, Palatine, Arlington Heights, and surrounding areas. Apply now to benefit from your innovations!
Learn all about R&D in a 3 min video →
💡 Big R&D Tax Update – What You Need to Know
The One Big Beautiful Bill Act (OBBBA) passed and brings major changes to how businesses handle R&D costs. Here’s what’s new, how it helps your company, and what to do next.
Full Deduction for Domestic R&D
U.S.-based R&D costs can be fully expensed in the year incurred.
- No more mandatory 5-year amortization for U.S. R&D.
- Applies to tax years beginning January 1, 2025.
Foreign R&D Still Amortized
R&D performed outside the U.S. remains subject to long-term amortization.
- Expenses must still be amortized over 15 years.
- Track where research activity occurs for accurate treatment.
Retroactive Benefits
Potential refunds and reduced prior-year taxable income.
- Most companies can amend returns to claim full deductions back to 2022.
Optional Amortization
Smooth earnings or match benefits to programs.
- You may elect to amortize domestic R&D over 5 or 10 years instead of expensing all at once.
📋 What to Do Next
- Review your R&D allocations — separate domestic vs. foreign costs.
- Assess prior-year filings — amending may deliver immediate tax savings.
- Coordinate with your tax advisor — ensure elections and documentation are airtight.
- Plan for 2025 — update forecasts and cash-flow models for full expensing.
This content is for general information only and isn’t tax or legal advice. Consult your advisor for guidance specific to your situation.
Connect With Us
Our R&D tax credit expert specializes in maximizing benefits for your innovation efforts. With extensive knowledge of qualifying activities and compliance requirements, they provide tailored strategies