About the Course
Introduction
This webinar will discuss how the One Big Beautiful Bill Act (OBBBA) affects the deductibility of research and development (R&D) expenditures for state income tax purposes. Our R&D credit veteran will review current federal provisions for R&D deductions, states' responses to recent changes, and best practices for deducting or amortizing R&D expenses in both conforming and nonconforming states.
Description
Now that the OBBBA allows taxpayers to immediately deduct research and experimentation (R&E) expenses, states are responding to this permanent change. States may follow federal legislation immediately, as of a specific date, or conform to specific IRC sections. States that conform to the IRC may comply at varying dates. California, for example, followed the federal provisions prior to TCJA and, consequently, has always allowed an immediate deduction for R&E expenses and continues to do so.
Many states have different rules based on the type of entity. SALT advisers working with multistate entities must understand the impact of R&D expensing on state taxes.
Listen as our panel of R&D experts discusses the recent 174 legislative changes made by the OBBBA and the impact of these changes on state taxes.
Presented By
As a tax partner for TaxOps Minimization, Ms. Overberg specializes in executing and managing a wide range of tax minimization strategies, including all aspects of the Research and Development tax credit as well as financial reporting requirements under FAS 109 and Fin 48. In addition, she works with Section 199, Section 263A, and Section 382 analysis, calculations, and reporting. Ms. Overberg works primarily with clients in the automotive, engineering, manufacturing, software, biotech and oil and gas sectors, and has worked on numerous R&D tax controversy engagements
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
Date + Time
- event
Tuesday, February 17, 2026
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. State responses to OBBBA's treatment of R&E expenses: introduction
II. OBBBA's changes to R&E
III. R&E costs
IV. State conformity
A. Nonconforming states
B. Conforming states
C. Other states
V. Implementing Section 174 expensing provisions
VI. Revenue Procedure 2025-28
VII. Best practices
The panel will cover these and other key issues:
- How does the permanency of R&D expensing under OBBBA impact SALT?
- What costs are included in the definition of R&D?
- Which states are nonconforming, and how is the deduction handled in these states?
- How specific states are responding to OBBBA changes to R&D
Learning Objectives
After completing this course, you will be able to:
- Identify certain states that conform with federal Section 174 legislation
- Determine which costs are considered R&D costs
- Decide how to handle the expense deduction in certain nonconforming states
- Ascertain how to properly make the accounting method change for Section 174 revisions
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of SALT taxation, nexus and apportionment as it applies to multi-state businesses.
BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .
