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.
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.
If your company invests in:
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.
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
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.
References
• Major Updates to R&D Tax Incentives Under the One Big Beautiful Bill ...
• OBBBA: R&D Expenses Deduction - tdacpa
• Full expensing of domestic research permanent under OBBBA