Did you know that businesses leave billions of dollars in unclaimed tax credits and deductions on the table every year? In a time of economic uncertainty and increasing regulatory complexity, CFOs can’t afford to miss out on these valuable opportunities. From R&D tax credits to cost segregation and bonus depreciation, strategic tax planning can free up capital, enhance cash flow, and drive long-term financial stability. Yet, many companies fail to take full advantage due to lack of awareness, capacity, complexity, or fear of audits. With shifting tax laws and IRS updates, it’s more important than ever for CFOs to ensure they are maximizing available incentives.

Key Tax Credits and Deductions Every CFO Should Know

1. R&D Tax Credits – Companies investing in research and development can significantly offset innovation costs and improve cash flow with savings on their federal and state income tax liability and, for eligible small businesses, their federal payroll tax liability.
2. Cost Segregation – Businesses with commercial real estate can accelerate depreciation, often generating tax savings of $50,000 to $100,000 per $1 million in building costs in the first year alone.
3. 179D Energy-Efficient Commercial Buildings Deduction – Companies investing in energy-efficient building improvements can qualify for deductions of up to $5.81 per square foot, depending on the level of energy savings achieved.
4. Depreciation Strategies – Utilizing bonus depreciation and Section 179 expensing allows businesses to deduct a significant portion of asset costs upfront, rather than spreading deductions over multiple years.
   • Bonus Depreciation: Businesses can deduct a percentage (currently 60% in 2024, phasing out by 2027) of qualified asset costs in the first year. This applies to both new and used assets.
   • Section 179 Expensing: Allows businesses to deduct up to $1.22 million in 2024 for eligible asset purchases, with a total spending cap of $3.05 million. This method applies only to business-use equipment and software.
5. 45L Energy-Efficient Home Credit – Residential property developers can claim up to $5,000 per eligible dwelling unit for energy-efficient home construction or renovation, making it a valuable credit for multifamily and single family residential builders.

Legislative & IRS Updates: What CFOs Need to Know

The tax landscape is constantly evolving, and CFOs must stay ahead of regulatory changes. Recent legislative actions have introduced new compliance requirements and expanded certain tax benefits.

• IRS Crackdowns on Non-Compliance: Ensuring proper documentation and eligibility for tax credits is more crucial than ever.
• Potential Changes in Tax Laws: Upcoming reforms could impact business deductions and tax rates, making strategic planning essential.
• Section 174 Amortization Changes: Originally enacted under the TCJA, Section 174 requires R&D expenditures to be amortized over five years rather than deducted immediately, impacting cash flow planning. However, with the TCJA set to expire at the end of 2025, current legislative discussions indicate a potential reversal within the next few months. If and when it’s overturned, immediate expensing for R&D costs could be restored, significantly affecting tax planning and financial strategy.
• Updates to Form 6765: The IRS recently introduced stricter documentation requirements for R&D tax credit claims, necessitating more detailed substantiation.
• What’s on the Horizon?: With the TCJA set to expire on December 31, 2025, tax policies could shift significantly depending on legislative control. CFOs must prepare for potential changes affecting credit eligibility and deduction limits.

These evolving regulations make it critical for CFOs to stay informed. Tracking real-time insights and expert guidance is more important than ever to help you navigate these changes effectively.

Taking Action: How CFOs Can Maximize Tax Benefits

1. Conduct a Comprehensive Tax Credit Review – Work with tax incentive specialists to assess eligibility and ensure no savings are overlooked.
2. Stay Updated on Legislative Changes – Regularly review IRS guidance and consult with experts to remain compliant.
3. Leverage Technology & Automation – Utilize software solutions to track qualifying expenses and streamline tax credit applications.

Next Steps

The ABGi team is closely tracking legislative discussions and regulatory changes in Washington, ensuring you stay informed on critical updates that may impact your business. We provide timely insights and analysis to help CFOs make strategic decisions in an evolving tax landscape. Staying ahead of tax regulations and leveraging available credits can significantly impact your company's financial health. Consider reviewing your current tax strategy, consulting with financial professionals, and staying informed on legislative updates to ensure you're making the most of available opportunities.

For real-time updates and expert insights, contact ABGi for help and subscribe to our tax news updates newsfeed to stay ahead of the latest developments and maximize your tax savings potential.