I think, ironically, the "Tax Cuts and Jobs Act of 2017" has gutted tech jobs and R&D in a profound way.
> The TCJA amended I.R.C. ยง174 such that, beginning in 2022, firms that invest in R&D are no longer able to currently deduct their R&D expenses. Rather, they must amortize their costs over five years, starting with the midpoint of the taxable year in which the expense is paid or incurred. For costs attributable to research conducted outside the U.S., such costs must be amortized over 15 years. This will be the first time since 1954 that companies will have to amortize their R&D costs, rather than immediately deduct those expenses.
The act actually took us back by many decades in terms of R&D incentives, and devastated US competitiveness vs China by disincentivizing R&D across the board.
I think, ironically, the "Tax Cuts and Jobs Act of 2017" has gutted tech jobs and R&D in a profound way.
> The TCJA amended I.R.C. ยง174 such that, beginning in 2022, firms that invest in R&D are no longer able to currently deduct their R&D expenses. Rather, they must amortize their costs over five years, starting with the midpoint of the taxable year in which the expense is paid or incurred. For costs attributable to research conducted outside the U.S., such costs must be amortized over 15 years. This will be the first time since 1954 that companies will have to amortize their R&D costs, rather than immediately deduct those expenses.
The act actually took us back by many decades in terms of R&D incentives, and devastated US competitiveness vs China by disincentivizing R&D across the board.