Press Release
In CTI’s webinar presented on January 8, 2026, CTI experts explored essential tax planning strategies and legislative updates for businesses looking to optimize tax savings for Tax Year (TY) 2025 and beyond. From maximizing deductions to leveraging new and expanded credits, the webinar session provided practical insights to help businesses stay ahead in an evolving tax landscape. For businesses, CPAs, and tax advisors unable to join the webinar, the following provides some key highlights and follow-up points for further guidance.
The Research and Development (R&D) Tax Credit was a focal point of the discussion. This credit remains a valuable tool for incentivizing innovation, with over $15 billion in federal R&D credits reported annually. However, many eligible businesses still fail to take advantage of these tax savings. CTI’s discussion underscored the importance of understanding federal and state-specific updates, such as the extension and increase of Texas R&D credits and California’s R&D calculation updates to align with the federal Alternative Simplified Credit (ASC) calculation.
CTI experts also discussed the recent updates to Section 174 Research & Experimental (R&E) expensing rules. For tax years 2022 through 2024, these R&E expenses must be capitalized and amortized. However, starting in TY 2025, domestic R&E expenses can be deducted in the current year. Further, companies that are qualified small businesses can amend prior returns to deduct unamortized R&E expenses incurred after TY 2021, with a filing deadline of July 6, 2026. CTI encourages businesses, large and small, to review the timing of project efforts, research expenses, and potential use of available credits to maximize tax benefits. CTI’s experts are available to review and assist in these tax planning efforts.
The webinar also highlighted the Section 179D deduction, as well as recent updates to timing requirements. CTI discussed the “sliding scale” for deductions based on efficiency improvements, with deductions of up to nearly $6.00 per square foot if certain requirements are met. It is important to note that Section 179D will sunset for any properties that break ground after June 30, 2026. However, building owners and certain designers may still take advantage of this incentive for buildings beginning construction prior to that date, as well as buildings already placed in service in prior years.
Cost segregation studies were presented as another effective strategy for property owners to accelerate deductions and improve cash flow. Businesses and owners with income-producing properties and those undertaking significant improvements can benefit from these studies, which have gained even more importance with recent legislative updates emphasizing tax savings for both newly constructed and existing properties.
One of the major updates discussed was the restoration of 100% bonus depreciation, as well as the introduction of qualified production property (QPP) under the One Big Beautiful Bill (OBBB) passed in 2025. QPP is a new class of nonresidential real property that may be eligible for an immediate 100% tax deduction under Section 168(n). CTI also noted the importance of strategically evaluating each unique set of facts and circumstances, including the type of property, timing of construction, and nature of building improvements. With the right strategy, companies can better plan capital expenditures and maximize the applicable tax savings.
The webinar concluded with key points regarding the importance of the Improve and Enhance the Work Opportunity Tax Credit (WOTC) Act. Proposed legislation plans to extend this program through December 31, 2030, while increasing the available credit percentages from 40% to 50% of qualified wages. This proposed legislation also adds new eligibility criteria, including the addition of military spouses and elimination of the age cap for SNAP recipients, making this credit more accessible to a broader range of businesses.
Effective tax planning is not just about compliance, it’s a strategic advantage. By staying informed about legislative updates and leveraging available credits and deductions, businesses can reduce their tax liability and reinvest their savings into growth opportunities. If you missed our webinar or have specific questions about these strategies, feel free to reach out to our team. Together, we can help you navigate these changes and optimize your tax planning for 2026 and the years ahead!
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