Unlocking Innovation ROI with the OBBBA – Part 2
Retroactive Refunds—A Hidden Win for Small Businesses
How the OBBBA lets you reclaim past R&D investments and boost your cash flow.
Why This Matters
If your business invested in R&D between 2022 and 2024, and your annual revenue is under $31 million, the One Big Beautiful Bill Act (OBBBA) may allow you to amend past tax returns and get cash back. This retroactive provision is one of the most overlooked—but potentially lucrative—features of the new law.
What Changed?
Before the OBBBA, domestic R&D expenses had to be amortized over five years, delaying tax benefits and limiting reinvestment. Now, not only can businesses fully deduct current R&D costs, but qualifying companies can also retroactively apply this rule to past years—unlocking refunds for expenses that were previously spread out.
Real-World Example
Imagine a regional manufacturer that built a custom inventory system in 2023 to streamline operations. Under the old rules, they’d only deduct a portion of those costs each year. But now, they can amend their 2023 return, apply the full deduction, and potentially reclaim thousands in taxes—money that can be reinvested into hiring, equipment, or expansion
How to Know If You Qualify
You may be eligible if:
- Your business earned less than $31M annually between 2022–2024.
- You invested in software development, automation, cybersecurity, or other qualifying R&D.
- You have documentation of those expenses.
Don’t leave money on the table.
Ask us about our R&D Readiness Audit to prepare your documentation and explore amended return opportunities. Bridgehead IT can help you navigate the process and maximize your refund.
Coming Next in the Series
- Part 3: How to Maximize Your R&D Tax Strategy in 2025 and Beyond
Learn how to align deductions with the R&D tax credit to double-dip and boost ROI.
References
• Major Updates to R&D Tax Incentives Under the One Big Beautiful Bill ...
