How the One, Big, Beautiful Bill Act Reshapes R&E Tax Treatment – Strategic Tax and Compliance Implications for Businesses
The One, Big, Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, marks one of the most transformative tax developments for innovation-driven businesses in recent years. Among its many provisions, the Act fundamentally overhauls the tax treatment of Research and Experimental (R&E) expenditures, effectively reversing the restrictive capitalization rules introduced under the 2017 Tax Cuts and Jobs Act (TCJA).
