Unlocking Innovation ROI with the OBBBA – Part 3

How to Maximize Your R&D Tax Strategy in 2025 and Beyond

Double-dip on deductions and credits to supercharge your innovation ROI.

The Big Opportunity

The One Big Beautiful Bill Act (OBBBA) doesn’t just restore full expensing of domestic R&D costs—it also aligns those deductions with the existing R&D tax credit. That means businesses can now double-dip: deduct qualifying expenses and claim a credit for increasing research activity.

This alignment creates a powerful incentive for companies to invest in innovation while reducing their tax liability.

How It Works

Here’s the breakdown:

• Deduction: You can fully expense domestic R&D costs in the year they’re incurred.
• Credit: You can also claim a federal R&D tax credit (typically 6–14%) for increasing qualified research activities.

Together, these benefits can significantly reduce your effective tax rate and free up capital for growth.

Real-World Example

A cybersecurity firm investing in threat detection software can:

• Deduct the full cost of development in 2025.
• Claim a credit for increasing research activity related to new threat models.

This strategy boosts ROI, reduces tax liability, and strengthens the firm’s ability to scale and compete.

Strategic Tips

To maximize your R&D tax strategy:

• Document everything: Keep detailed records of qualifying activities, expenses, and outcomes.
• Align your tech roadmap: Prioritize projects that meet IRS criteria for qualified research.
• Consult experts: Work with tax professionals or innovation consultants to ensure compliance and optimization.

Let’s make your innovation work harder.

Book a strategy session with Bridgehead IT to align your tech roadmap with tax savings and unlock the full potential of the OBBBA.

Series Recap

• Part 1: What Is the OBBBA—and Why Should You Care?
  Full expensing of domestic R&D costs is back—boosting cash flow and innovation.
• Part 2: Retroactive Refunds—A Hidden Win for Small Businesses
  Amend past returns and reclaim thousands in taxes if you invested in R&D between 2022–2024.
• Part 3: How to Maximize Your R&D Tax Strategy in 2025 and Beyond
  Align deductions and credits to double-dip and drive ROI.