US 2028 R&D Tax Credit

2028 R&D credit: 6-14% qualifying expenses. Section 174 capitalization REQUIRED since 2022 (5-yr US, 15-yr foreign R&D). Major working capital hit for many small biz.

Qualifying R&D expenses ($)

Credit type

Tax Credit

—

Year 1 Deduction

—

Deferred

—

Qualifying R&D expenses	—
R&D credit (Section 41)	—
Year 1 deductible (Sec 174)	—
Deferred to future years	—

R&D Tax Credit (Section 41) 2028: 6-14% of qualifying research expenses (wages, supplies, contract research). Two methods: Regular Research Credit (6%) requires base period calculation; Alternative Simplified Credit (ASC) 14% no base period. Section 174 capitalization (since 2022) requires 5-year US R&D amortization + 15-year foreign — major working capital hit.

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Last updated May 2026. Sources: IRS.