New R&D Expense Rule Impacts Manufacturers

Manufacturers with significant R&D expenditures will likely face higher taxable income and tax liability, according to this insight from OMA Connections Partner Schneider Downs.

Previously, taxpayers could either deduct R&D expenses or amortize them over five years. The 2017 tax law eliminates this choice for the current tax year, requiring taxpayers to amortize expenses over five years for R&D performed in the U.S. (and for 15 years if conducted abroad). 8/2/2022