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by xutopia 737 days ago
Wait... how can I learn more about how this affects engineers?
2 comments

This is a good explanation.

https://blog.pragmaticengineer.com/section-174/

A recent bill has given relief for the domestic amortization but is still stuck in the senate.

https://gop-waysandmeans.house.gov/wp-content/uploads/2024/0...

look up "IRS Section 174 changes". here is a decent link, specific to startups[0].

but a simplified TL;dr is that companies used to be able to expense that year's R&D costs (including salaries for developers etc) in that same taxable year. now, that is no longer the case, and companies must amortize those R&D costs over 5 years.

this is not ideal.

[0] https://www.axios.com/2024/01/20/taxes-irs-startups-section1...