American Innovation and R&D Competitiveness Act of 2025

Rewrites the federal tax rules for research and experimental (R&E) costs so businesses can again deduct qualifying R&E expenses right away or choose to amortize certain capitalized research costs over time. It clarifies how and when taxpayers make these elections and what types of costs do not qualify.

It also updates related tax rules to match the new treatment and applies to tax years starting on or after January 1, 2022, allowing retroactive relief for companies that had to amortize R&E under current law.