What Is the OBBBA - and Why Should You Care?
One of the most impactful tax updates in years, especially for innovators.
Welcome to the Series
This piece kicks off our 3-part series, Unlocking Innovation ROI with the OBBBA, designed to help business leaders, CFOs, and tech innovators understand how the One Big Beautiful Bill Act (OBBBA) can transform their approach to R&D investment. Whether you're building automation tools, scaling cybersecurity infrastructure, or developing proprietary software, the OBBBA offers a powerful financial incentive to innovate boldly — and strategically.
What Is the OBBBA?
Signed into law on July 4, 2025, the OBBBA is a sweeping piece of legislation that touches everything from infrastructure to education. But for businesses, one of its most exciting features is the return to full expensing of domestic R&D costs.
Previously, companies had to amortize these expenses over five years—delaying the tax benefits and tying up cash flow. Now, under the OBBBA, qualifying R&D investments can be deducted immediately, giving businesses more flexibility to reinvest in growth.
Why It Matters
If your company invests in:
- Software development
- Cybersecurity tools
- Automation systems
- HIPAA-compliant technologies
- Or other qualifying innovations
You can now deduct those costs in the same year they’re incurred. That means more liquidity, faster scaling, and a stronger ROI on your innovation roadmap.
Real-World Example
A small healthcare tech firm building HIPAA-compliant automation tools can now deduct those development costs in the same year, thus freeing up cash to hire engineers, expand infrastructure, or accelerate go-to-market timelines
Curious if your tech investments qualify?
Schedule a free Innovation ROI Review with Bridgehead IT to find out how much you could save—and how to reinvest those savings into future growth.
What’s Next in the Series?
- Part 2: Retroactive Refunds - A Hidden Win for Small Businesses
Learn how companies earning under $31M annually can amend past returns and reclaim thousands in taxes. - Part 3: How to Maximize Your R&D Tax Strategy in 2025 and Beyond
Discover how to align deductions with R&D tax credits to double-dip and boost ROI.
References
• Major Updates to R&D Tax Incentives Under the One Big Beautiful Bill ...
