What’s New

New section 174A. Section 70302 of P.L. 119-21, commonly known as the One Big Beautiful Bill Act, adds new section 174A to the Internal Revenue Code generally allowing a deduction for domestic research and experimental expenditures. Under section 174A, these expenditures, by definition, must be paid or incurred in the taxpayer’s “trade or business.” As a result, we have added activities involving section 174A research or experimental expenditures to the list of trades or businesses under Trade or Business Activities , later.