R&D Expense Deduction Changes under Section 174

Dec 8, 2020
Tax and Accounting

Welcome to the page dedicated to R&D expense deduction changes under Section 174 brought to you by Life Designers, your trusted consulting and coaching partner in the field of business and consumer services.


Research and Development (R&D) plays a crucial role in driving innovation and growth in businesses, which is why staying informed about the latest changes in the R&D expense deduction is essential. At Life Designers, we understand the importance of maximizing benefits for our clients, so let's delve into the recent updates and how they may impact your business.

The R&D Expense Deduction

The R&D expense deduction is a tax incentive provided by Section 174 of the Internal Revenue Code (IRC). It allows businesses to deduct qualified research expenses from their taxable income, ultimately reducing their overall tax liability. This deduction encourages companies to invest in research and development activities, driving innovation and fostering economic growth.

Latest Changes and Impact

On [Insert Date], updates to the R&D expense deduction under Section 174 were announced, aiming to streamline the process and provide further clarity. These changes can have a significant impact on how businesses can claim deductions for their research and development expenses.

1. Expanded Definition of Qualified Research Expenses

One of the key changes includes an expanded definition of qualified research expenses. The new guidelines have broadened the scope, allowing additional costs to be considered as eligible expenses. This expansion opens up opportunities for businesses to include previously excluded costs, such as employee wages, supplies, and contract research expenses.

2. Simplified Documentation Requirements

Another crucial change is the simplified documentation requirements for claiming the R&D expense deduction. The updated regulations provide clearer guidelines, reducing the burden of extensive documentation while maintaining the integrity of the deduction. This makes it easier for businesses to claim the deduction with confidence and ease.

How Life Designers Can Help

As industry-leading consultants and coaches in the field of business and consumer services, Life Designers is well-equipped to guide you through these R&D expense deduction changes under Section 174. Our team of experts stays updated with the latest developments, ensuring that our clients optimize their deductions while remaining compliant with IRS regulations.

Consulting Services

Our consulting services cater to businesses of all sizes, offering personalized guidance on how to navigate the updated R&D expense deduction landscape. We conduct thorough analyses of your company's research initiatives, identifying eligible expenses and designing strategies to maximize your deduction. Our experts provide comprehensive advice on documentation, record-keeping, and compliance, ensuring your business benefits from the deduction effectively.

Coaching Services

In addition to our consulting services, Life Designers offers coaching programs to empower your teams with the knowledge and skills necessary to fully leverage the R&D expense deduction changes. Our experienced coaches provide interactive workshops, training sessions, and ongoing support to enhance your understanding of the latest guidelines and optimize your internal processes.


Staying ahead of the game in the ever-changing landscape of R&D expense deductions is crucial for businesses looking to drive innovation while minimizing tax liabilities. With the recent changes under Section 174, it's essential to partner with experienced professionals like Life Designers who can guide you through these updates and help you unlock the full potential of the R&D expense deduction.

Contact Life Designers today to learn more about our consulting and coaching services. Together, let's navigate the evolving R&D landscape and empower your business to thrive.