Aldrich Uncertainty Report

TAX STRATEGY

TRANSITION + SUCCESSION

Timeline for exiting the business

All

3-5 years

6-10 years

> 10 years

Don’t have one

What actions are you taking today in response as a result of OBBBA? Respondents could choose more than one answer

71%

Reviewing tax strategy with advisors

12%

38%

California

45%

Reassessing entity or ownership structure

Mountain West

13%

25%

38%

66%

Adjusting investment plans

15%

25%

15%

45%

Oregon

Expanded R&D Deductions: See What Your Business Could Claim

13%

19%

27%

40%

All West

To help you get started, here’s five questions to determine if you might qualify: 1. Are you developing or improving products, processes, or software? 2. Did the work involve technical uncertainty or risk? 3. Did your team use a process of experimentation (testing, modeling, iteration)? 4. Was the work grounded in engineering, computer science, or similar disciplines? 5. Do you have wages, contractor payments, or supply costs tied to these activities? A Checklist to Guide Your R&D Credit Strategy To make it easier to evaluate your eligibility, we’ve developed the Aldrich OBBBA R&D Checklist—a concise, one-page tool designed to help private company leaders identify potential opportunities under the new law.

The Research and Development (R&D) tax credit was designed to encourage innovation across a broad range of industries, not just scientists in a lab. Eligible activities often span sectors like architecture, engineering, construction, manufacturing, software development, and product design—anywhere businesses are developing new or improved processes, products, or technologies. The One Big Beautiful Bill Act (OBBBA) presents significant R&D opportunities for businesses, including the ability to fully deduct domestic R&D expenses in the year they’re incurred, starting in 2025. The law also allows certain companies to retroactively deduct previously capitalized R&D costs from recent tax years. How to Know if Your Company May Qualify From product development to process improvements, many companies may already qualify without realizing it. The R&D credit remains a generous federal and state incentive, and the standards to qualify are more accessible than many assume. If your business is taking technical risks or improving how it operates, now is the time to revisit your R&D strategy.

In the last 12 months, how many times have you received unsolicited questions or offers about potentially selling your business?

1-2 times

3-5 times

54%

15%

California

Mountain West

63%

25%

70%

Oregon

61%

15%

All West

With 76% of companies receiving unsolicited interest from potential buyers, even owners not planning to exit soon should begin preparing. A successful transition takes time — often years — to strengthen management teams, improve financial reporting, and address tax implications. Finding the right buyer can take even longer, particularly for owners who prioritize continuity for employees

and customers. Starting early, even a decade in advance, gives owners the flexibility to enhance business value and choose the right path forward. Aldrich advisors help business owners plan strategically so they’re ready when the right opportunity arises.

Scan the QR code to access the checklist and see how your business might benefit from the R&D credit.

Aldrich Uncertainty Report | Q4 2025

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