Leyton is an international consulting firm that helps businesses leverage financial incentives to accelerate their growth and achieve long-lasting performance.
As we move into 2026, the strategy is no longer just about identifying tax credits, it’s about navigating a high-compliance environment where timing and domestic presence are the new currencies of innovation.
In our recent year in review webinar, Leyton’s panel of experts, including:
Cedric James | Director of Commercial Real Estate
Devin Medrek | Innovation Tax Manager
Savannah Durham | Assistant Team Lead – Senior Technical Consultant
Brian Ess | SALT Practice Lead
Unpacked a series of important shifts in the North American tax landscape.
The OBBB Act: A Strategic Pivot for R&D
To start, the most transformative update for 2026 is the One Big Beautiful Bill (OBBB) Act, signed into law on July 4, 2025. This legislation fundamentally changes how businesses handle Research and Experimental (R&E) expenditures under Internal Revenue Code Section 174.
Domestic Relief: For tax years beginning after December 31, 2024, the OBBB Act reinstates immediate expensing for domestic R&D. This allows companies to deduct 100% of R&D-qualified wages, supplies and contractor costs in the year they are incurred, rather than amortizing them over five years.
The Foreign Penalty: A critical distinction remains: foreign R&D costs incurred by U.S. companies still must be capitalized over 15 years. As our experts noted, this creates a significant “Buy American” incentive, urging companies to relocate technical teams to the U.S. to maximize cash flow.
The Small Business Window: July 6, 2026
Meanwhile, small businesses (those with average annual gross receipts under $31 million from tax years 2022 – 2024) have a unique, time-limited opportunity for retroactive relief.
Amended Returns: These entities can amend 2022–2024 returns to capture R&D credits without the capitalization burden.
The Hard Deadline: Under OBBB Section 70302(f) and Rev Proc 2025-28, the final deadline to file these amended elections is July 6, 2026 (or the expiration of your specific statute of limitations to amend past-year returns, whichever is earlier).
Grants & Federal Re-Prioritization
Beyond tax credits, Savannah Durham highlighted a shifting tide in federal funding. The Department of Energy (DOE) and NIH have moved away from broad alternative energy grants toward “domestic reliability.”
Infrastructure over Solar: The DOE has recently deprioritized certain wind and solar initiatives in favor of domestic mineral production and grid infrastructure upgrades.
Funding Losses: With billions in NIH funding programs canceled in 2025, companies must look toward specialized grants targeting U.S. manufacturing and supply chain resilience. This also increases the importance of tax incentives for eligible companies to claim and provide financial relief and bolster their opportunities to hire personnel and continue their innovative work.
SALT: The Expanding Digital Tax Net
On the State and Local Tax (SALT) front, Brian Ess warned of a “broader net.” As states face federal funding cuts, they are modernizing codes to tax the digital economy.
Digital Goods: States like Maryland and Louisiana have recently expanded sales tax to include SaaS and digital advertising.
Simplification: On a positive note, states like Illinois (effective Jan 1, 2026) are dropping the confusing 200-transaction threshold, moving toward a simpler gross sales revenue model (typically $100,000) for economic nexus.
Compliance & The IRS “AI” Shift
On the compliance side, Devin Medrek discussed the “compliance gap” created by a 25% reduction in IRS headcount. The agency is bridging this gap with AI-based screening.
Form 6765 Redesign: The IRS has finalized a more granular Form 6765. While Section G (Business Component Information) is optional for the 2025 tax year, it will become mandatory in 2026 (processing year 2027) for most filers.
Perfection Window: Taxpayers have until January 10, 2027, to “perfect” deficient R&D credit refund claims within 45 days of an IRS notice.
Follow us on youtube watch the full webinar replay and stay tuned for our upcoming expert webinars!
Q&A: Insights from the Experts
Where can we look to see how new sales tax laws affect marketplaces? addremove
Consult the Marketplace Facilitator Laws on each state’s Department of Revenue (DOR) website. These laws clarify when the platform (e.g Amazon) is responsible for collection versus the seller.
If you provide Section 8 housing, are you eligible for LIHTC? addremove
Providing Section 8 housing does not automatically qualify a property for LIHTC, as they are distinct programs, LIHTC incentivizes development via tax credits, while Section 8 offers tenant rent subsidies.
Properties can overlap if they meet LIHTC’s income limits and financing rules, but consult a tax specialist or state housing agency to confirm eligibility for your project
What is the most critical deadline for R&D relief? addremove
If you are a small business (under $30M in annual sales) looking to claim retroactive relief for the 2022–2024 period, your deadline to amend returns is July 6, 2026. Waiting until the last minute could result in missing out on substantial liquidity.
