What’s New

Section G—Business Component Information. For tax years beginning before 2026, Section G will be optional for all filers. If filing an amended return, see Research Credit Claims on Amended Returns, later.

For tax years beginning after 2025, Section G will be required, subject to the guidelines in Section G—Business Component Information . If filing amended returns, see Research Credit Claims on Amended Returns , later.

Domestic research and experimental expenditures. P.L. 119-21, commonly known as the One Big Beautiful Bill Act, added new section 174A to the Internal Revenue Code. Section 174A(a) allows taxpayers to deduct amounts paid or incurred for domestic research and experimental expenditures in tax years beginning after December 31, 2024. Alternatively, under section 174A(c), a taxpayer may elect to charge such expenditures to a capital account and amortize such expenditures ratably over a period of not less than 60 months, beginning with the month in which the taxpayer first realizes benefits from such expenditures. In addition, section 70302(f) of P.L. 119-21 provides taxpayers with various transition options that may be applied to recover unamortized amounts paid or incurred in tax years beginning after December 31, 2021, and before January 1, 2025, that were capitalized and amortized for such tax years. See Rev. Proc. 2025-28 for information regarding the transition options contained in section 70302(f) of P.L. 119-21, as well as the procedures to follow to begin applying either section 174A(a) or (c) for the taxpayer’s first tax year beginning after December 31, 2024.