R&D Tax Credits, Cost Segregation & Proactive Planning: What Tax Professionals Need to Know in 2026

As tax professionals, we know one thing for certain: clients don’t want surprises at tax time.

Yet every year, business owners are shocked by their tax liability — not because the code changed overnight, but because proactive tax planning wasn’t part of the strategy.

In a recent industry discussion, Charina Padilla, Director of Client Development at Engineered Tax Services, shared valuable insights on how CPAs and tax advisors can better serve clients through advanced tax strategies like the R&D Tax Credit, cost segregation, and engineering-based tax studies.

If you’re a CPA, EA, or tax advisory firm looking to elevate your services and increase client value, this guide is for you.

The Shift from Tax Preparation to Tax Planning

One of the biggest takeaways for tax professionals:

Tax preparation is reactive. Tax planning is strategic.

Waiting until year-end to evaluate deductions limits options. True advisory firms integrate:

• Mid-year planning sessions
• Capital expenditure analysis
• R&D qualification reviews
• Real estate depreciation strategies

Firms that adopt a proactive approach not only reduce client tax burdens — they increase retention, referrals, and advisory revenue.

R&D Tax Credit 2026: What Actually Changed?

Common Client Misconception:

“The R&D credit went away.”

The Truth:

The credit calculation has not changed.

What changed under Section 174 is how R&D expenses are deducted.

Current Rules:

• Domestic R&D expenses must be amortized over 5 years
• Foreign R&D expenses must be amortized over 15 years
• The credit itself remains intact

This creates planning opportunities — but also documentation risks.

What CPAs Should Be Doing:

• Identifying clients with development, software, manufacturing, architecture, engineering, or process improvement activities
• Evaluating historical eligibility
• Ensuring documentation supports qualified research activities
• Modeling amortization impact on cash flow

Many business owners qualify and don’t even realize it.

That’s where partnering with a technical specialist like Engineered Tax Services becomes valuable.

Bonus Depreciation Is Phasing Down — But Cost Segregation Still Matters

With bonus depreciation stepping down from 100% in prior years and continuing to phase out, many CPAs are reassessing accelerated depreciation strategies.

However, cost segregation remains a powerful tool when properly structured.

Beyond cost seg, advanced firms are also leveraging:

• Partial Asset Disposition (PAD)
• Purchase Price Allocation studies
• Repairs vs. Capitalization analysis
• IC-DISC structures for exporters

The key is technical accuracy and defensibility — especially in an increasingly scrutinized IRS environment.

Engineering-backed studies reduce audit risk and increase confidence.

The #1 Mistake CPAs See Clients Make

According to Charina:

Business owners focus on compliance instead of strategy.

As tax professionals, this is our opportunity.

Firms that position themselves as strategic advisors — rather than seasonal preparers — can:

• Command higher fees
• Offer value-based pricing
• Improve client outcomes
• Differentiate in competitive markets

Documentation: The Audit Shield

For R&D credits especially, documentation is not optional.

CPAs should ensure:

• Qualified activities are clearly identified
• Wage allocations are defensible
• Project narratives are detailed
• Contemporaneous records exist

Technical engineering support strengthens substantiation and reduces audit exposure.

Why Partner with Engineered Tax Services?

Engineered Tax Services is a national leader in engineering-based tax services, supporting thousands of CPA firms across the United States.

What Makes Them Different?

✔ Engineering + Accounting expertise
✔ National presence with local support
✔ Audit-ready documentation
✔ White-labeled CPA partnerships
✔ Education-first approach

They don’t replace the CPA — they empower the CPA.

Their team works directly with firms to:

• Identify opportunities within your existing client base
• Provide defensible technical studies
• Support IRS inquiries
• Deliver continuing education and training

Expanding Beyond Tax Credits: Advisory Support for Accounting Firms

Through their advisory umbrella platform, they also support accounting firms with:

• Practice growth strategies
• Leadership development
• Marketing insights
• CRM tools designed specifically for accounting firms

In a profession facing automation, AI disruption, and fee compression, elevation into advisory services is critical.

SEO Keywords Tax Professionals Should Care About

If you’re optimizing your firm’s online presence, consider targeting:

• R&D tax credit 2026 changes
• Section 174 amortization rules
• Cost segregation study for CPAs
• Engineering tax services partnership
• Advanced tax planning strategies
• Bonus depreciation phase out

Clients are searching for these topics — and so are other CPAs looking for collaboration partners.

Final Takeaways for Tax Professionals

If you want to future-proof your firm:

1️⃣ Shift from preparation to proactive planning
2️⃣ Re-evaluate client eligibility for R&D credits
3️⃣ Don’t abandon cost segregation — refine it
4️⃣ Strengthen documentation and defensibility
5️⃣ Partner with specialists when needed

The tax code may evolve — but opportunities remain for firms that stay informed and strategic.

Ready to Deliver More Value to Your Clients?

If you’re a CPA firm looking to:

• Expand your advisory services
• Offer R&D and engineering-based studies
• Increase client savings while protecting audit defensibility
• Differentiate your firm in a crowded marketplace

Connect with Charina Padilla and the team at Engineered Tax Services.

Visit: https://engineeredtaxservices.com
Connect with Charina on LinkedIn
Schedule a consultation to explore partnership opportunities

In today’s environment, the firms that win are the ones that plan, collaborate, and innovate.

Don’t let your clients “leave a tip” to the IRS.