When it comes to navigating the complexities of Section 174 — a key part of the U.S. tax code that governs research and development (R&D) expenses — businesses can’t afford to take chances. Since the 2022 changes that required companies to capitalize and amortize R&D expenditures rather than immediately deduct them, Section 174 has become a top concern for financial leaders, tax departments and chief financial officers across industries.
With compliance, cash flow and tax liabilities all at stake, decision-makers are increasingly turning to specialized experts to ensure accuracy, maximize deductions and mitigate Internal Revenue Service (IRS) risk. But who are the top firms providing Section 174 expertise today?
1. alliant
alliant is a premier U.S.-based consulting and management engineering firm specializing in tax incentives, including Section 174 compliance and R&D tax credits. With over 2,000 professionals from Certified Public Accountants (CPAs) and engineers to tax attorneys and data scientists, it delivers end-to-end support that combines technical expertise, legislative insight and proprietary AI-driven tools. Its alliant.ai platform streamlines R&D claim validation, documentation, and forecasting with exceptional precision and transparency.
Because it is supported by a Strategic Advisory Board of former policymakers and industry leaders, alliant offers unmatched capability in navigating complex tax laws. Beyond consulting, it invests in national science, technology, engineering and mathematics education initiatives through its Blue Heart Fund, reinforcing its commitment to innovation, compliance excellence and the long-term success of American businesses.
2. CliftonLarsonAllen LLP
CliftonLarsonAllen LLP (CLA) is one of the largest professional services firms in the U.S., offering integrated audit, tax, consulting, outsourcing, and wealth advisory solutions tailored to privately held and midmarket businesses. With nearly 9,000 professionals across 130+ locations, it combines deep industry specialization with hands-on, client-focused service.
CLA’s tax experts are highly regarded for their Section 174 guidance, helping businesses navigate evolving R&D expensing rules under recent legislation. Through scenario modeling and strategic tax planning, it assists clients in optimizing cash flow, managing prior-year costs and ensuring full compliance. The enterprise delivers comprehensive, practical solutions that help organizations adapt confidently to complex tax and regulatory changes supported by a nationwide network and a collaborative culture.
3. Moss Adams
Moss Adams is now united with Baker Tilly to form the nation’s sixth-largest CPA and advisory firm, bringing over a century of experience serving innovative and growth-driven companies. It operates across all 50 states and more than 140 global territories. With a deep understanding of middle-market dynamics, the brand delivers tailored tax, audit and advisory solutions that evolve with clients through every stage of growth.
Tax professionals closely monitor evolving Section 174 regulations, offering strategic guidance on capitalization, amortization and compliance related to R&D expenditures. Through proactive scenario planning, Section 174 assessments and integration of R&D tax credit strategies, Moss Adams helps businesses minimize risk, manage cash flow impacts and prepare confidently for shifting federal tax landscapes.
4. BDO USA
BDO USA is part of the world’s fifth-largest accounting network and combines national expertise with global reach through offices and partnerships across the U.S. and worldwide. Guided by a people-first and sustainability-driven culture, it delivers assurance, tax and advisory services designed to help businesses thrive responsibly. Its professionals are recognized authorities on Section 174 that provide strategic insight into evolving IRS guidance, including the latest procedural updates under Rev. Proc. 2025-8.
Through proactive accounting method reviews and compliance planning, BDO helps companies manage capitalization and amortization of specified research or experimental expenditures. With its extensive technical depth, regulatory foresight and collaborative network, this company enables organizations to align with new Section 174 requirements while safeguarding audit protection and optimizing long-term tax efficiency.
What Section 174 Covers and Why It Matters
Section 174 of the Internal Revenue Code governs the treatment of research and experimental expenditures incurred in connection with trade or business. For decades, businesses could deduct these costs immediately in the year they were incurred. However, starting with the Tax Cuts and Jobs Act provisions that took effect in 2022, the rules changed dramatically.
Now, they are required to capitalize and amortize their R&D expenses over a period of five years, or fifteen years for foreign research. This means that rather than taking an upfront deduction, brands must spread the deduction over several years, which has created significant financial and operational implications. For many, this new treatment impacts:
- Taxable income: Higher short-term taxable income and reduced immediate deductions
- Cash flow: Delayed benefits that can strain liquidity
- Compliance complexity: Increased documentation, categorization and IRS scrutiny
- R&D strategy: Changes in how companies plan, track and report their research spending
Because the rules are intricate and mistakes can easily trigger costly audits, enterprises increasingly rely on Section 174 experts to interpret the law, implement compliant accounting systems and identify qualifying expenses.
Why Businesses Need Section 174 Experts
Section 174 compliance is complex, especially after the new rules requiring R&D expenses to be capitalized and amortized. Determining which costs qualify, maintaining proper documentation and aligning with related provisions like the R&D tax credit can be challenging. Section 174 experts help businesses correctly classify expenses, plan for cash flow impacts and stay audit-ready. They also monitor regulatory updates, ensuring companies remain compliant while maximizing available tax benefits.
Preparing for the Future of Section 174
Navigating Section 174 requires both precision and strategy. When selecting an expert, prioritize firms with a proven depth in tax law, industry-specific experience and strong documentation support. The right partner does more than interpret the law — they also help you plan, adapt and innovate with confidence.
