Exclusive Partner
UHY
UHY helps agricultural businesses uncover and claim federal and state R&D tax credits for innovative activities—often overlooked in the ag sector. These credits can generate significant tax savings by recognizing the cost of developing or improving products, processes, or technologies.
Latest News on R&D Tax Credits
Big Changes to R&D Tax Deductions after Big Beatiful Bill Signed
Starting with the 2025 tax year, new legislation will make it easier and more beneficial for businesses to deduct research and development (R&D) expenses. Heres what you need to know:
- Immediate Expensing is Back
- Businesses will once again be able to fully deduct their R&D expenses in the year they’re incurred, instead of spreading those costs out over several years. Effective for tax years starting after December 31, 2024.
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Special Benefits for Small Businesses
- If your business made $31 million or less in annual revenue, you may qualify for a retroactive deduction of R&D costs from 2022 and 2023 — even if you couldn’t deduct them before. This could lead to major refunds by amending past tax returns.
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Accelerated Deductions for Past R&D
- If you were required to amortize (spread out) your R&D costs from 2022 to 2024, you now have two options:
- 1. Deduct the full remaining amount in 2025, or
- 2. Split the deduction evenly between 2025 and 2026.
- If you were required to amortize (spread out) your R&D costs from 2022 to 2024, you now have two options:
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When Does This Take Effect?
- These updates apply to tax years starting after December 31, 2024.
- Most businesses will see the change on their 2025 tax return, filed in spring 2026.
- What This Means for You
- Lower taxes thanks to bigger deductions
- Refund opportunities if you qualify to amend earlier returns
- Simplified planning for future R&D spending