On July 4, 2025, President Trump signed the “One Big Beautiful Bill Act” (H.R. 1) into law. This sweeping legislation locks in lower tax rates, and restores some valuable incentives for business owners, including 100% Bonus Depreciation, immediate R&D expensing, and the Section 199A Qualified Business Income Deduction.
For business owners, this isn’t just good news–it’s a call to action. The new rules create opportunities to save big before the end of 2025, but only if your tax planning strategy is in place in time.
According to a recent industry report, the U.S. pharmaceutical industry spends more than $100 billion annually on research and development (R&D) activities involving the development, design and testing of new or improved pharmaceutical drugs. Many of these activities qualify for federal and state R&D tax credits; is your company taking advantage of this opportunity to reinvest in the growth of your company?
Software development is often overlooked when it comes to research and development (R&D) tax credits, which is rather ironic when you think about the innovation, creativity and invention that is such an intrinsic part of this industry. Any time your software company makes improvements to products or processes, there is a good chance that your activities may qualify for valuable R&D tax credits that can greatly reduce your tax burden.
Environmental Engineers perform many activities on a daily basis and may be unaware they can qualify for valuable research and development (R&D) tax credits.
R&D activity in the chemical industry sector either involves new production processes or new compositions of matter (product development). Research objectives generally include, but are not limited to, higher performing products, sustainability features, alterations aimed at regulatory compliance, and cost reductions.
Companies utilizing nutritional science across the U.S. in the fields of food processing, laboratories, hospitals, health food producers, vitamin and dietary supplements are just some candidates for the R&D tax credit.
In May and June of 2025, Texas Governor Greg Abbott signed pivotal legislation that introduces a permanent research and development (R&D) tax credit and makes significant amendments to the state's franchise tax rules. These changes which take effect in 2026, aim to enhance the state's appeal for businesses engaged in innovative research while simplifying the tax landscape.
Enacted in 1981, the Federal Research and Development (R&D) Tax Credit allows a credit of up to 13 percent of eligible spending for new and improved products and processes. Companies engaged in 3D printing should be taking full advantage of all available federal and state tax credits. Problem is not many companies utilizing 3D printing even know they are qualified for these tax credits.
Biotechnology companies are continuously undertaking qualified research activities to solve the greatest challenges facing our society. Whether it’s finding a cure for cancer, protecting against bio-terror threats, or creating renewable energy sources, biotech and life science companies can take advantage of the R&D tax credits for their qualified research expenditures associated with these activities.
Since the start of Trump’s second term, a wave of corporations have announced major expansions of their U.S. manufacturing operations. While tariffs and trade policy are often cited in recent headlines, a far more powerful motivation is at play: the new R&D tax credits introduced under the One Big Beautiful Bill Act (OBBBA).
Signed into law on July 4, OBBBA has essentially reshaped the financial incentives for companies that build, innovate, and manufacture here in America. The legislation locks in permanent, expanded R&D tax credits that allow businesses to offset significant portions of their investment in new facilities, advanced technologies, and domestic innovation pipelines.
