SWAT Advisors tells business owners to reset tax plans for bonus depreciation and R&D changes

SWAT Advisors says new tax law changes restoring full bonus depreciation and immediate R&D expensing are making older capital spending models obsolete for 2026. The firm says business owners should review equipment purchases, research spending and possible amended returns before year-end.

Why it matters: - Restored bonus depreciation and domestic R&D expensing can change how much tax a business owes in 2026. - Companies that still rely on older assumptions may be undercounting deductions and mistiming purchases. - Manufacturers, technology companies and other R&D-heavy businesses could see the biggest planning impact.

What happened: - SWAT Advisors, a California-based tax planning and advisory firm founded by Amit Chandel, is urging business owners to revisit equipment, capital expenditures and research and development tax decisions. - The firm says recent legislative changes have restored 100 percent bonus depreciation for qualifying property placed in service after January 19, 2025. - The firm also says domestic R&D expenses are again eligible for immediate deduction in the year incurred. - Chandel said many business owners are still using tax models built for rules that no longer apply.

The details: - Bonus depreciation had been scheduled to decline from 100 percent toward 40 percent and then to zero by 2027. - The restored rule means businesses may be able to deduct more of the cost of equipment, machinery and other qualifying property in the first year. - Under rules that took effect in 2022, businesses had to capitalize and amortize domestic R&D expenses over five years. - That earlier requirement increased taxable income for many R&D-intensive companies. - The reversal allows eligible businesses to deduct qualifying domestic R&D costs when incurred instead of spreading them over time. - Chandel said some businesses may have opportunities to amend prior returns depending on their situation. - SWAT Advisors said business owners should review capital expenditure plans, confirm prior-year R&D treatment, assess whether amended returns make sense and reconsider the timing of 2026 purchases and research spending. - The firm said working with a tax advisor familiar with both provisions can help determine whether a current strategy still fits the law.

Between the lines: - The two changes interact because equipment purchases and research spending both affect taxable income and cash flow in the same year. - Businesses that coordinate both decisions may be able to improve their overall tax position. - Chandel said many owners are still planning as if the old depreciation rules were in place. - The message is partly about timing: tax benefits are easier to capture before year-end than after filing season.

What's next: - Business owners still have several months in 2026 to adjust spending plans. - The most immediate actions are to update tax models, review prior filings and reconsider the timing of planned equipment purchases and R&D spending. - SWAT Advisors says the businesses that review their numbers now are more likely to benefit than those waiting until next spring.

The bottom line: - Restored bonus depreciation and R&D expensing create a fresh planning window in 2026, but only for businesses that update their tax strategy to match current law.