Swanson Reed | Specialist R&d Tax Advisors

By Author: Swanson Reed
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We are thrilled to report a landmark decision from Washington: Congress has passed the "Tax Relief for American Families and Workers Act of 2024," officially restoring immediate R&D expensing.

Since 2022, your business has been forced to amortize R&D costs over five years—a burdensome rule from the 2017 TCJA that hampered cash flow and penalized investment. This new law reverses that policy, retroactively to 2022. This means you can once again deduct 100% of your U.S.-based R&D costs in the year they are incurred.

As our CEO, Damian Smyth, stated, "This is a monumental victory for American competitiveness. Forcing companies to amortize R&D expenses was a direct tax on innovation. Restoring immediate expensing unleashes critical capital, empowering businesses to push the boundaries of science and technology."

At Swanson Reed, we expect this to significantly boost R&D expenditure, and we will be tracking this success with our AI innovation metric, inventionINDEX. We urge our clients to begin reviewing their 2022 and 2023 tax returns immediately to capture the full benefits of this change by filing amended returns.

Founded in 1984 as Reed & Co. by Joe William Norris, Swanson Reed grew over the next 40 years to be one of the largest specialist R&D tax advisory firm in the United States. We file over 1500 R&D tax claims per year. Swanson Reed manages all facets of the R&D claim process. This includes R&D tax advisory and consultant services (documentation assurance and IRS review advisory), R&D tax claim preparation and claim review. We have offices located across the United States, including: Georgia, Fort Worth, Chicago, Denver, Nashville, St Louis, Detroit and Huntsville. Contact: Address: 1120 South Fwy Suite 123, Fort Worth, TX 76104, USA Phone: (817) 769-8168 Website: https://www.swansonreed.com/