OBBBA permanently reinstates immediate expensing of domestic R&E costs (including software) for tax years after Dec. 31, 2024. Foreign R&E remains amortized over 15 years. Small businesses with average annual gross receipts of $31M or less can elect retroactive deductions to 2022.
Sample Scenario: A tech startup spends $200,000 on software development in 2025. They can deduct the full amount immediately instead of amortizing over several years.