State Responses to OBBBA Treatment of R&D Expenses: Conforming and Nonconforming States CPE

by | Feb 6, 2026 | ASC 740, Events, Federal Tax, State and Local, Tax Minimization, Tax News | 0 comments

Join TaxOps’ Jamie Overberg as she discusses how the One Big Beautiful Bill Act (OBBBA) affects the deductibility of research and development (R&D) expenditures for state income tax purposes. 2-credit CPE course at Barbri.

State Responses to OBBBA Treatment of R&D Expenses: Conforming and Nonconforming States

Online Only | 2.0 Credits

Tuesday, February 17 | 1:00 PM ET

Register

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.

Instructors:

Jamie Overberg
Partner, TaxOps Minimization
TaxOps

With over 20 years of Research & Development (R&D) credit experience, Jamie specializes in executing and managing all aspects of the R&D tax credit as well as a wide range of tax minimization strategies and financial reporting requirements under ASC 730, ASC 740 and Fin 48. Jamie also works with Section 263A and Section 382 analysis, calculations, and reporting. She 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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