IRS letter on your desk?We take over contact with the IRS.IRS Audit RepresentationExams, appeals, collections, penalty reliefBusiness TaxPlanning and compliance for mid-size companiesIndividual & Family TaxHigh-net-worth, multi-state and cross-borderOffshore Disclosure & SDOPFBAR, PFIC and Streamlined filingsTaxpayer Rights in an IRS AuditYour rights, step by stepAudit & AssuranceAudits, reviews, 401(k) plan auditsGovernment Contracting8(a), DCAA, incurred cost submissionsMergers & AcquisitionsDue diligence, QoE, valuations
Government contractorsDCAA, rates and incurred costGovernment Contractors & TechnologyIT, professional services, federal primes and subsReal Estate & ConstructionOwners, developers, contractorsMedical Practices & ClinicsPhysicians, urgent care, clinics, dentalHealthcare StaffingTravel nurse, allied and per diem agenciesRestaurants, Retail & HospitalityFranchises, multi-unit, hotels, e-commerceStaffing & IT CompaniesIT staffing, software, multi-state payroll
New YorkMidtown Manhattan officeWashington, DCOffice · 20 F St NWNew YorkOffice · Avenue of the AmericasNorthern VirginiaHeadquarters · AshburnTexasDallas, Houston, Austin, San AntonioCaliforniaLos Angeles, Bay Area, San DiegoRaleigh, NCResearch Triangle and CharlotteChicago, ILChicago, Naperville, SchaumburgBoston, MABoston, Cambridge, WalthamSeattle & Redmond, WASeattle, Redmond, BellevueTax credits & incentives · 2026
The 2025 tax law (the One Big Beautiful Bill Act) restored immediate R&D expensing, made 100% bonus depreciation permanent, expanded employer credits and cut back clean energy incentives. Here is where the main credits stand for 2026, with the Internal Revenue Code sections behind each.
Serving United States, Virginia, Washington, DC, Maryland.
What we handle
R&D: section 174A lets businesses deduct domestic research and experimental costs immediately for tax years beginning after 2024, ending the five-year amortization that applied from 2022. The section 41 research credit itself is unchanged, and qualified small businesses can still apply up to $500,000 a year of it against payroll taxes. Foreign research costs are still amortized over 15 years.
Depreciation and energy: 100% bonus depreciation under section 168(k) is permanent for property acquired and placed in service after January 19, 2025, and section 179 expensing rose to $2.5 million with a $4 million phase-out threshold, indexed for inflation after 2025. Clean energy credits moved the other way: the residential solar credit ended after 2025, and business solar and wind credits now require construction to have begun by July 4, 2026 or the project to be placed in service by the end of 2027.
Speak with an advisorWhere we help
No credit for home solar and other residential clean energy expenditures made after December 31, 2025.
Terminated for vehicles acquired after September 30, 2025.
179D ends for projects beginning construction after June 30, 2026; 45L ends for homes acquired after that date.
Authorized through December 31, 2025 and not renewed as of late 2026; keep screening hires in case Congress extends it retroactively.
Our approach
A short review of your activities, assets, payroll and projects to find every credit that fits.
Calculate the credit or deduction and its interaction with other rules, such as section 280C and state conformity.
Build the support the IRS expects: project files, time studies, cost segregation reports, certifications.
File the forms, coordinate payroll offsets, and support the claim in an IRS exam.
Questions
If your question isn't here, call (703) 880-8412 and you'll reach a person.
Yes. The section 41 credit was not changed, and section 174A now allows domestic research costs to be deducted immediately. Because of section 280C, you either reduce the deduction by the credit or elect a reduced credit.
Activities that pass the four-part test: a permitted purpose (new or improved function, performance, reliability or quality), technological uncertainty, a process of experimentation, and reliance on engineering, computer science or physical or biological science. Software development and manufacturing process improvements often qualify.
A business solar project can still qualify if construction began by July 4, 2026 under IRS beginning-of-construction rules, or if it is placed in service by December 31, 2027, and it meets the foreign entity and wage requirements. The homeowner credit under section 25D ended after 2025.
Yes, for qualifying property acquired and placed in service after January 19, 2025. Property acquired under a binding contract before that date follows the old phase-down rules.
Bonus depreciation has no dollar cap and can create a loss; section 179 is limited by taxable business income and the $2.5 million ceiling but can be applied asset by asset. Many businesses use both, and state rules (Virginia does not follow federal bonus depreciation) also matter.
Not always. Virginia generally does not allow federal bonus depreciation and sets its own conformity date each year, so state returns often need separate depreciation schedules.
Latest updates
Authorized representatives can now make balance-due, amended return, extension, proposed assessment and federal tax deposit payments for business clients online. Appropriate authorization for the client and tax matter is required.
Source: IRS (IR-2026-134)
For 2027 the joint-return standard deduction rises to $33,200, the estate tax basic exclusion to $15,480,000, the annual gift exclusion to $20,000 and the Section 179 expensing limit to $2,640,000. Our advisors recommend revisiting year-end gifting and equipment purchase plans with these figures in mind.
Source: IRS (IR-2026-133)
All 6,576 nominated census tracts, including 2,594 rural tracts eligible for enhanced benefits, become Opportunity Zones on January 1, 2027 for ten years. Investors with capital gains should review the new map before committing funds.
Source: IRS (IR-2026-132)
Related
Tax planning and compliance for mid-size businesses: S corporations, partnerships, C corporations, multi-state nexus, sales and use tax and entity structuring.
Learn moreHeadquartersAddress, local tax issues and the full range of services in Northern Virginia.
Learn morePer diem and housing stipend compliance for healthcare staffing companies that place travel nurses and allied staff: accountable plans, tax home verification, wage recharacterization risk, 2026-27 IRS rates and the court cases that shape IRS audits.
Learn moreHospitalityTax, audit and advisory for owners of franchised hotels such as Marriott, Hilton, IHG, Hyatt and Choice brands: 100% bonus depreciation, cost segregation, PIP renovations, franchise fees, passive loss planning, tips, occupancy and BPOL taxes.
Learn moreIndustryTax and compliance advisory for IT staffing, consulting and software development companies: multi-state payroll registration, state income and sales tax nexus, remote employees, H-1B and C2C contractors, worker classification and R&D credits.
Learn moreStart a conversation
Tell us what you're facing. A senior advisor will reply within one business day with a clear next step.