One, Big, Beautiful Bill provisions – Other Taxes
Domestic research or experimental expenditures (Section 70302)
Overview of the tax benefit
For taxable years beginning after December 31, 2024, taxpayers may deduct domestic research or experimental expenditures which are paid or incurred by the taxpayer during the taxable year. Alternatively, taxpayers may elect to capitalize and take an amortization deduction for domestic research or experimental expenditures over a period of no less than 60 months, beginning in the month in which the taxpayer first realizes benefits from such expenditures. Expenditures for the acquisition or improvement of land or depreciable or depletable property are not eligible.
Taxpayers may not currently deduct foreign research or experimental expenditures but may capitalize and amortize them ratably over a 15-year period beginning with the midpoint of the taxable year in which such expenditures are paid or incurred.
Transition rules and selection procedures are available as outlined in Revenue Procedure 2025-28.
Related resources
IRC section 174A, Domestic Research or Experimental Expenditures
IRC section 174, Amortization of Research and Experimental Expenditures
Revenue Procedures 2025-28 PDF, Changes in accounting periods and in methods of accounting
Dyed Fuel Claims (Section 70525)
Overview of the new claim
The Act creates a claim for payment, without interest, equal to the federal excise tax previously paid on clear diesel fuel or kerosene that is later indelibly dyed and removed at a terminal for a nontaxable use.
Claim requirements
Applies to eligible dyed diesel fuel and kerosene removed on or after Dec. 31, 2025.
Eligible fuel includes:
Previously taxed fuel (that was not credited or refunded),
Indelibly dyed by mechanical injection, and
Removed from an approved terminal for a nontaxable use
Important details
Guidance on the process for submitting claims will be issued in early 2026
The forthcoming guidance will enable refunds to taxpayers that paid the tax on the dyed fuel to which the claim relates
Do not file claims until guidance is issued; the IRS will not process any claims until that time
Related resources
Announcement 2026-01 PDF, Claims under § 6435 for Tax Paid on Dyed Fuel
Forthcoming guidance on recovering excise tax paid on dyed fuel (IR-2025-125)
Excise tax on certain remittance transfers (Section 70604)
Overview of the excise tax
Beginning Jan. 1, 2026, remittance transfer providers must:
Collect the 1% excise tax on applicable remittance transactions when the sender pays with cash, a money order, a cashier’s check, or a similar physical instrument
Make semimonthly deposits
File quarterly returns with the IRS
Important details
The first semimonthly deposit is due Jan. 29, 2026
Treasury and the IRS will provide limited penalty relief. This relief applies for the first three quarters of 2026 under Treasury and IRS guidance. Providers may avoid deposit penalties if they make timely deposits (even if the amount is later adjusted) and pay any underpayment by the due date of the applicable quarterly return (Form 720). Safe-harbor rules under excise-tax regulations may also apply
Related resources
Notice 2025-55, Relief from Penalty for Failure to Deposit Remittance Excise Tax (PDF) PDF
Penalty relief for remittance transfer providers (IR-2025-102)
