Section 174 R&D Capitalization Calculator (2026)
Estimate how much R&D you can deduct now vs. capitalize under §174A — and the phantom tax a foreign engineering team creates.
Section 174 R&D expensing calculator
2026 rules (§174A). Domestic R&D is fully deductible; foreign R&D is capitalized over 15 years.
Enter your domestic and foreign R&D spend to see what is deductible now versus capitalized over 15 years.
Estimate only, for tax years beginning after Dec 31, 2024 (§174A). Foreign R&D uses a 15-year straight-line with a half-year convention (year-1 = 1/30). Ignores the §41 credit, the 2022-2024 transition rules, and state conformity. Not tax advice — confirm with your CPA. Sources: IRC §174 / §174A (OBBBA, Pub. L. 119-21), Rev. Proc. 2025-28.
Want the full mechanics, edge cases, and 2026 rules behind this tool?
Read the full guide: Section 174: R&D Capitalization After OBBBA (2026)→This tool gives an estimate for planning only — not tax advice. Acorn 9 is a tax & accounting firm built for startups; the actual numbers on your return are prepared and signed by a licensed CPA. See all tools.