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 2020. 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!
Highlights
R&D Tax Changes Summary (Effective After 2024)
The recently passed "One Big Beautiful Bill Act" (OBBBA) restores full expensing for U.S. domestic R&D costs under Section 174. For tax years beginning after December 31, 2024, businesses can either immediately deduct domestic R&D expenses or elect to capitalize and amortize them over a minimum of 60 months.
Foreign R&D costs must still be capitalized and amortized over 15 years.
This update provides retroactive relief for small businesses, allowing them to fully expense R&D costs for tax years after 2021. Additionally, companies that capitalized R&D from 2022–2024 may speed up their remaining deductions.
How We Handle R&D Tax Credit Services
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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