Section 174(a): R&D Tax Deduction Rules for Technology Companies (2025 Update)Section 174(a) governs how technology companies deduct research and development (R&D) expenses for tax purposes. Under the Tax Cuts and Jobs Act, businesses were required to capitalize and amortize domestic R&D costs over five years rather than deduct them immediately, according to guidance from the Internal Revenue Service. However, the 2025 One Big Beautiful Bill Act (OBBA) reversed this requireme