If you own a business — even a small, local one — there’s a good chance you’re sitting on thousands in tax deductions without even knowing it.
Thanks to the One Big Beautiful Bill Act, which just passed both chambers of Congress and is headed for President Trump’s signature, there’s a powerful, one-time opportunity for businesses to go back and claim deductions on research and development (R&D) activities from the past three years.
Yes, you read that right.
For a limited time, small businesses can retroactively deduct R&D expenses from 2022, 2023, and 2024, even if they didn’t file for those deductions at the time.
And depending on your situation, this could result in a major refund — not just reduced taxes going forward.
So, What’s the Catch?
Two things:
The deadline to file retroactively is July 4, 2026.
Filing for R&D credits is a detailed process — and waiting too long could push you past that deadline.
In other words: This window closes, and once it does, the ability to go back three years with a retroactive claim disappears.
After that? R&D expenses can still be deducted, but only in the year you incur them — no more looking backward.
Why This Matters
In 2022, an unpopular rule change started requiring businesses to amortize (spread out) their R&D deductions over five years. It was a blow to innovation — especially for small businesses.
The Big Beautiful Bill fixes that. Going forward, you can deduct 100% of your R&D costs immediately, in the year you incur them. But even better: it gives businesses a short window to fix past filings.
That means you may be able to reclaim real cash for development work and innovation you already paid for — with zero risk.
Most Business Owners Think They Don’t Qualify. They’re Usually Wrong.
When people hear “R&D,” they think of white lab coats, Silicon Valley engineers, and biotech companies.
But here’s the truth: the R&D tax credit is shockingly broad, and it’s not limited to high-tech firms.
We’ve seen chiropractors, dental labs, contractors, marketing firms, custom manufacturers, and even construction teams qualify — because the real question isn’t what industry you’re in.
It’s what kind of work you’re doing.
Here are examples of activities that may qualify as R&D:
Developing custom tools, materials, or products
Building or refining internal software systems
Creating new treatment protocols or workflows
Testing out different techniques or formulas
Hiring technical staff to work on process improvements
Experimenting with new packaging, delivery, or customer experience models
Trying to reduce environmental impact or improve efficiency
If you’ve paid staff or contractors to solve technical problems, build something new, or improve how your business functions — you probably qualify.
Do You Meet the Size Requirements?
To use this three-year retroactive deduction, your business must have average gross receipts under $31 million over the past three years.
This rule is designed to support small to mid-sized businesses — especially ones that are innovating on a budget.
If you’re under that revenue cap, and you’ve been making investments in innovation, this credit is designed for you.
How Much Could It Be Worth?
That depends on what you’ve spent. But in many cases, it’s tens of thousands of dollars per year, and because the deduction can be applied retroactively to three years at once, you’re looking at a substantial total benefit.
For some, it could mean a large refund check when they file their 2025 return.
But again: that’s only if you act before July 4, 2026.
Why Waiting Might Cost You
Many businesses will wait until late 2025 or early 2026 to “get serious” about this. By then, they may find that:
Their bookkeeping needs to be rebuilt to support the claim
Their documentation is incomplete
They’re competing with a wave of last-minute filers
The IRS or state agencies are experiencing delays
And if they miss the window? It’s over.
So even though you technically have time, the smarter move is to start planning now, so you can file on time — with confidence and supporting documentation.
What You Should Do Next
If you’ve never claimed the R&D credit before, this is your chance.
If you have claimed it in recent years, this is your chance to maximize what you’re owed.
And if you’re not sure whether your business qualifies — now is the perfect time to find out.
There’s no downside to checking. And the upside could be real cash back from the IRS — money you already spent in service of growing your business.
The Bottom Line
The Big Beautiful Bill fixed a broken system.
It restored full expensing for R&D — and gave businesses a one-time shot to reclaim the past three years of expenses they thought were gone.
Most businesses that qualify don’t even know they qualify. And most tax professionals don’t specialize in identifying these kinds of credits unless you’re working with a team that does this every day.
That’s where we come in.
At Quartermaster, we help small and mid-sized businesses uncover tax opportunities most firms overlook. Whether you’re a chiropractor, a lab, a contractor, or something totally different, if you’ve been innovating — we want to help you get rewarded for it.
The window closes July 4, 2026. The time to act is now.
Let us know if you’d like a free R&D eligibility review. We’re here to help you reclaim what’s yours — while there’s still time.
