The Big Beautiful Breakdown: Section 174 Fixed? What That Really Means

Chris Wittich and Matthew Koch explore the long-awaited fix to Section 174 that finally passed in the new tax bill. After three years of painful addbacks and capitalization requirements, businesses with domestic R&D expenses can now go back to deducting them, but not without a few key decisions.

Chris and Matthew walk through what changed, what didn’t, and what options businesses now have to handle their prior-year expenses. With three different paths for small businesses and two for larger ones, the modeling, timing, and risk tolerance involved will all play a role in the decision.

They also cover IRS delays, state conformity challenges, and how advisors can guide clients through the uncertainty.