How R&D Capitalization Changed Tax Bills After 2022

Episode 75 of The Tax Policy Podcast digs into a quiet but consequential tax rule change: the requirement to capitalize R&D costs starting in 2022. Lucas and Luna walk through how the Tax Cuts and Jobs Act eliminated the option to immediately deduct research spending, why companies like Pfizer and small biotech startups saw their effective tax rates jump, and what the bipartisan 'American Innovation and R&D Competitiveness Act' proposes to fix it. They discuss a concrete example of a midsize software company whose tax bill rose by $1.2 million, and what that means for R&D investment decisions in 2026. No hot takes, just the mechanics of a policy shift that is still rippling through corporate tax planning. #RDCapitalization #TaxPolicy #Economics #Business #FexingoBusiness #BusinessPodcast #Podcast #RDTaxCredit #TaxCutsAndJobsAct #CorporateTax #BiotechTax #SoftwareR&D #AmericanInnovationAct #CongressionalBudgetOffice #TaxPlanning #EffectiveTaxRate #R&DInvestment #TaxReform Keep every episode free: buymeacoffee.com/fexingo