Section 174 R&D Capitalization Explained for 2026

Section 174 R&D capitalization now runs two directions in 2026. For tax years beginning after December 31, 2024, domestic research is deductible in the year spent under new Section 174A, while foreign research still amortizes over 15 years. Indinero’s tax team keeps the domestic-versus-foreign split in your ledger year-round, backed by continuous operations since 2009.