Alliant Celebrates Congressional Action to End Section 174 Amortization, Easing Burden on Small Businesses
[City, State] – July 9, 2025 – Alliant, a leading national professional services firm, today expressed its strong approval and gratitude for the recent Congressional decision to end the requirement for businesses to amortize research and development (R&D) expenses under Section 174 of the Internal Revenue Code. This significant legislative action is poised to provide much-needed financial relief and stability, particularly for the nation’s small businesses.
The mandate, which took effect at the beginning of 2022, required companies to capitalize and amortize their R&D expenses over five or fifteen years, rather than deducting them in the year they were incurred. This change had a considerable impact on cash flow, especially for innovative small businesses that rely heavily on immediate R&D deductions to fund their ongoing research and development efforts and to remain competitive.
Alliant has been a vocal advocate for reversing this policy, recognizing the detrimental effects it had on the innovation ecosystem. The firm understands that R&D is the engine of progress and economic growth, and that hindering the ability of businesses, especially smaller ones, to invest in new ideas and technologies would ultimately stifle job creation and national competitiveness.
“We are incredibly pleased to see Congress take decisive action to rectify the situation regarding Section 174,” stated [Name and Title of a relevant Alliant executive, e.g., CEO or Head of Tax Practice]. “This reversal is a critical victory for small businesses and the broader innovation economy. The ability to immediately deduct R&D expenses is not merely a tax provision; it is a vital lifeline that allows companies to reinvest in their future, develop groundbreaking products and services, and create valuable jobs.”
The firm highlights that many small businesses have faced significant challenges in adapting to the amortization requirement. The increased tax burden, coupled with the complexity of accounting for these long-term assets, diverted resources and attention away from core business operations and innovation. By reinstating the immediate deductibility of R&D expenses, Congress is effectively removing a substantial hurdle for these companies.
Alliant believes this legislative move will encourage greater investment in research and development across all sectors, fostering a more robust and dynamic business environment. It will allow entrepreneurs and innovators to focus their energy and capital on bringing their ideas to fruition, rather than grappling with the financial strain imposed by the previous amortization rules.
The firm commends the bipartisan leadership in Congress for recognizing the importance of this issue and for listening to the concerns of the business community. This decision demonstrates a commitment to supporting American innovation and ensuring that the United States remains at the forefront of technological advancement.
Alliant stands ready to assist its clients and the broader business community in navigating any transitional aspects of this policy change, ensuring they can fully leverage the benefits of the reinstated R&D expense deductibility. This is a moment of significant positive change, and Alliant looks forward to witnessing the renewed spirit of innovation and growth it will undoubtedly inspire.
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PR Newswire Policy Public Interest published ‘alliant Statement: alliant Applauds Congressional Leadership Ending Section 174 Amortization and Providing Critical Relief to Small Businesses’ at 2025-07-09 19:00. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.