ValueCredit of 20% of QRE over base (or 14% alternative simplified credit) — typically nets ~6-10% of qualified spend; plus OBBBA's new §174A restores immediate expensing of domestic R&E for tax years beginning after 12/31/2024 (foreign R&E stays 15-yr amortization)
DeadlinesPermanent; claimed on return via Form 6765 (Rev. Proc. 2025-28 governs 174A elections); small-business amended-return election window closed 7/6/2026
RequirementsQualified research per 4-part test (technological in nature, eliminates uncertainty, process of experimentation, new/improved business component); contemporaneous documentation; Form 6765 with expanded Section G reporting for 2025+
Caveatsprocess-development work at plants (RNG pathway development, CO2 purification trials, novel process controls) can qualify but documentation bar is high; payroll-tax offset (up to $500K) limited to qualified small businesses
Last verified2026-08-23