Innovation drives growth, and for many businesses, research and development (R&D) investments are a critical part of long-term success. Recent federal tax legislation provided welcome relief by allowing businesses to once again deduct certain research expenses immediately. However, New York State has taken a different path, creating new tax planning and compliance considerations for companies operating within the state.
Those who work in the construction industry are likely seeking ways to reduce their tax liabilities. Fortunately, there are two great ways construction companies can save thousands to millions of dollars—the research and development (R&D) tax credit and the 179D energy tax deduction.
Massachusetts recently enacted legislation that temporarily decouples the state from several tax provisions included in the federal One Big Beautiful Bill Act (OBBBA). While the federal law restored valuable tax incentives for businesses, Massachusetts has chosen to delay adoption of certain measures, creating differences between federal and state tax treatment beginning in 2025.
Many of the activities conducted by architecture firms qualify, and the benefit can mean tens of thousands of dollars in tax savings.
Wisconsin has taken a major step toward strengthening its position as a leader in manufacturing and innovation. Governor Tony Evers recently signed Senate Bill 482/Assembly Bill 494 into law, now known as 2025 Wisconsin Act 220, a bipartisan measure designed to make the state's Research & Development (R&D) Tax Credit more valuable for businesses investing in innovation.
Most contractors in the construction industries, including HVAC companies, don’t know that their day to day activities can qualify them for federal, and in some cases state, R&D tax credits.
For years, businesses investing in innovation have faced a frustrating tax hurdle; under Section 174, domestic research and development (R&D) expenses could no longer be deducted immediately and instead had to be amortized over five years. That change created cash flow strain for many companies, especially small and mid-sized businesses heavily invested in product development, software creation, and process improvement.
The state of Connecticut is doubling down on innovation, and small businesses stand to benefit in a big way. Recently there has been a push by state leaders to expand and strengthen R&D tax credit programs, with a particular focus on making them more accessible and valuable to startups and small to midsize companies. For businesses investing in research, product development, or process improvement, this signals a major opportunity to improve cash flow and reinvest in growth.
Many of the activities conducted by restaurant technology and software companies qualify for the R&D tax credit.
Many companies in the food processing industry do not realize that they are eligible for the research and development tax credit.
