New Guidance on R&E Expensing

The IRS just released new guidance on how to handle R&E expensing elections due to the OBBBA

Photo by David Wirzba on Unsplash

The One Big Beautiful Bill Act now allows farmers and other taxpayers to fully expense research and development expenses starting in 2025. However, small taxpayers (under $31 million of aggregated revenues) are allowed to file amended tax return for 2022, 2023 and 2024 if desired or they can elect to fully expense carryover non-deducted R&E expenses in either 2025 or spread it over 2025-2026.

The IRS just released Revenue Procedure 2025-28 that provides guidance on all of these elections, etc.

Instead of us trying to summarize all of the details, we are providing a link to another site that has already done the work (plus I was stuck on a tarmac last night for over an hour and still getting caught up).