Company
Date Published
Author
Kiera Blessing
Word count
983
Language
English
Hacker News points
None

Summary

The recent passage of the One Big Beautiful Bill Act (OBBBA) has significantly expanded R&D tax credits for businesses, allowing them to deduct research and development expenses from their current tax year, reversing a prior requirement to amortize these costs over five years. This legislative change has increased demand for tax credit service providers, particularly among small and medium-sized businesses that may not be aware of these benefits. Companies like Arvo and Neo.Tax are leveraging automation and integrations, such as payroll systems, to streamline the R&D tax credit process, offering tech-forward, affordable solutions that minimize client effort and enhance data security. These integrations are crucial as employee wages constitute a significant portion of eligible R&D expenses, enabling service providers to efficiently calculate credits and expand their client base. With the opportunity to claim retroactive credits limited to this year, businesses are urgently seeking providers who can quickly and effectively maximize their savings through these enhanced tax incentives.