KPMG report: Treatment of domestic R&E expenditures under OBBBA—state tax and important federal considerations
State tax implications of the OBBBA's restoration of immediate expensing for domestic research and experimental (R&E) expenditures
Pub. L. No. 119-21 (the “One Big Beautiful Bill Act” (OBBBA)) restored immediate expensing of domestic research and experimental (R&E) expenditures under new section 174A. In response, a number of states issued guidance on the treatment of these expenditures.
Read a January 2026 report prepared by KPMG LLP that discusses the state income tax considerations, as well as important federal income tax considerations, of the changes.