Congress Weighs Key Tax Reforms: What’s Ahead for U.S. Innovators and Energy-Efficient Businesses

As Congress enters a critical phase of tax bill negotiations, key incentives for businesses—especially those driving innovation and sustainability—are on the table. At EPSA USA, we’re closely monitoring developments that could impact the way our clients plan, grow, and claim vital tax benefits.

R&D Tax Credit: A Comeback in Sight

One of the most pressing topics for innovative businesses is the potential revival of the full R&D Tax Credit. Since 2022, the amortization requirement under IRC §174 has disrupted the ability of U.S. firms to immediately deduct R&D expenses—especially painful for startups and mid-sized businesses reinvesting heavily in development.

Lawmakers are now considering not just reinstating the immediate expensing of R&D costs, but also making the change retroactive. If passed, this could mean significant refunds for past tax years—putting crucial dollars back into companies pursuing cutting-edge solutions (ENR, 2025).

179D Deduction: Sustainability Incentives in Jeopardy?

The fate of green energy incentives is less certain. As Republicans search for budget offsets, billions in clean energy credits—including those for energy-efficient commercial buildings—are under scrutiny.

The 179D deduction has been instrumental in rewarding A&E firms and building owners for implementing sustainable design. While some lawmakers support maintaining clean energy credits, others propose trimming or eliminating them. EPSA continues to advocate for policies that support green innovation and believes these incentives remain essential for achieving national energy goals (Wall Street Journal, 2025).

Business Investment: Expensing & International Provisions

There’s strong lobbying for expanded bonus depreciation and new write-offs for domestic manufacturing and factory equipment—benefits that could be a boon to industrial and engineering firms. Additionally, multinational companies are closely watching whether Congress will pause a scheduled increase in global minimum tax rates on foreign profits (Reuters, 2025).

What Happens Next

With internal party disagreements around income tax rates, SALT deductions, and other offsets, it’s unclear how quickly a final bill will emerge—or how much of the current proposal will survive intact. However, the conversation in D.C. signals that lawmakers are paying attention to business competitiveness.

At EPSA USA, we stand ready to help clients adapt to this evolving landscape. Whether it’s maximizing R&D tax credit claims, capitalizing on 179D deductions, or navigating changes in international tax policy, our team ensures you’re equipped to turn legislative shifts into opportunity.

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If you’re unsure how these changes could affect your company’s tax strategy, reach out today. Our team is monitoring the situation closely and is here to provide guidance as new updates emerge.