R&D Questions Linger Even if Tax Bill Gets Senate Approval

Even if the US Senate passes the bipartisan business tax bill the House OK’d last week, companies will still have years of lingering questions around how to deduct or amortize spending on research and development.

The House passed the bill—which includes the return of the full deduction for R&D spending, plus other tax breaks for businesses, plus an expansion of the child tax credit—under an expedited process Jan. 31, sending it to a more wary Senate.

It wouldn’t be a clean fix, and companies and tax pros say the uncertainty around R&D tax policy means businesses may struggle planning ...