It’s time to analyze your research expenditures
Abstract: Recent changes to the tax treatment of research expenditures are having a big impact on many manufacturers’ tax bills. The most significant change took effect in 2022 pursuant to the Tax Cuts and Jobs Act (TCJA). Given the potential impact of possible deductions, manufacturers should conduct a study of their research expenditures and consider strategies for reducing their tax bills. This article reviews the changes made by the TCJA and the Inflation Reduction Act of 2022.