Tax Credits and Incentives Articles

Signed into law on July 4, 2025, the Reconciliation Bill—officially titled the One Big Beautiful Bill (OBBB)—introduces sweeping changes to the U.S. tax code.

The One, Big, Beautiful Bill Act proposes to restore the immediate deductibility of research and experimental (R&E) expenses, reversing the changes introduced by the Tax Cuts and Jobs Act (TCJA) that required these expenses to be capitalized and amortized over several years. If enacted, this bill would provide significant financial relief to innovation-focused businesses by allowing them to deduct R&E expenditures immediately. Please note that the tax law discussed in this article is currently proposed and has not yet been enacted.

Maryland's fiscal 2026 budget introduces a 3% sales tax on data and IT services, along with new tax brackets and increased rates for high-income earners. The budget also raises taxes on cannabis, sports betting, and vehicle excise, while proposals to reduce corporate tax rates and repeal inheritance tax were not included.

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire individuals from targeted groups facing significant barriers to employment. The credit can be as much as $2,400 per eligible employee. To qualify, employers must complete a pre-screening notice and file Form 8850.

Explore tax credits for boosting research activities, bonus credits, tax credit monetization, and more in this comprehensive guide to business incentives and tax credits.

The Tax Cuts and Jobs Act requires businesses to amortize rather than immediately deduct R&E expenses, resulting in higher tax bills and reduced cash flow for many manufacturers. To offset this impact, companies can leverage tools like the research tax credit, cost segregation studies for accelerated depreciation, and reclassification of certain expenses. Congress may revisit this issue in 2025, potentially restoring immediate expensing for R&E costs.

On September 18, the IRS and the Treasury Department released proposed regulations regarding the credit for qualified alternative fuel vehicle refueling property under IRC Section 30C.

The Department of the Treasury and the IRS on April 25 released long-awaited final regulations (T.D. 9993) related to the transfer of certain credits under Internal Revenue Code Section 6418, added by the Inflation Reduction Act (IRA), which describes rules for the election to transfer eligible credits in a taxable year. 

Using Sec. 179 deductions together with bonus depreciation deductions is a smart tax strategy. For more information on how these rules apply or for any questions, our team is ready to help you.

Claiming the Work Opportunity Tax Credit is a federal tax credit that offers manufacturers an opportunity to diversity the workforce while realizing significant tax saving.