11/19/2025
BIG Tax Update for Business Owners
If your business invests in improvements, new products, software, training systems, technology, or any type of innovation, this is for YOU.
Starting in 2025, businesses can immediately deduct all domestic Research & Experimental (R&E) expenses in the year they occur.
(No more spreading deductions over 5 years!)
This can include:
• New product or service development
• Software or app development
• Process or workflow improvements
• Quality testing
• Research related to new offerings or systems
Why this matters:
Instead of waiting years to write off these costs, you can deduct them upfront, which can lower your taxable income and increase your available cash for business growth.
This update is especially beneficial for:
✔ Small businesses
✔ Startups
✔ Tech-focused companies
✔ Beauty & product-based brands
✔ Transportation & logistics companies
✔ Any business developing new processes, systems, or services
A few quick notes to stay compliant:
• This applies to U.S.-based research only
• An election may be required on your return
• Some businesses may qualify to amend 2022–2024 returns
• Proper documentation is still needed to support R&E expenses
If you want to see whether your expenses qualify under these new rules, message me, I can break it down for your business specifically.
