Uncle Dave
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From my tax accountant last week, it looks like we might finally get back to prioritizing American engineering.
If so this would put a definite plus check mark for the Don in this category.
Anybody that had an engineering department they paid for got royally fucked under Biden.
With 50 engineers on my payroll we took it squarely in the clacker on this.
This is a step to take us back to where we were before and I hope Don pulls it off.
The House Ways and Means committee released their draft of the tax bill. Below is an email from Spidell that has a summary of some of the changes in the draft.
I looked at the draft tax bill to see what the R&D provision were. Here is what the draft tax bill says:
“Sec. 111002. Deduction of domestic research and experimental expenditures.
Current Law: Under current law, taxpayers are required to deduct research or experimental expenditures over a five-year period. Research or experimental expenditures that are attributable to research conducted outside the U.S. are required to be deducted over a 15-year period.
New Provision: This provision allows taxpayers to immediately deduct domestic research or experimental expenditures paid or incurred in taxable years beginning after December 31, 2024, and before January 1, 2030. This provision includes rules to coordinate the immediate deductibility of domestic research or experimental expenditures with the research credit, rules clarifying the treatment of foreign research or experimental expenditures, and other coordinating changes.”
It appears that we will continue to amortize the 2022-2024 capitalized R&D over 5 years but begin full deduction of 2025’s R&D. Anything could change between now and when it becomes law.
If so this would put a definite plus check mark for the Don in this category.
Anybody that had an engineering department they paid for got royally fucked under Biden.
With 50 engineers on my payroll we took it squarely in the clacker on this.
This is a step to take us back to where we were before and I hope Don pulls it off.
The House Ways and Means committee released their draft of the tax bill. Below is an email from Spidell that has a summary of some of the changes in the draft.
I looked at the draft tax bill to see what the R&D provision were. Here is what the draft tax bill says:
“Sec. 111002. Deduction of domestic research and experimental expenditures.
Current Law: Under current law, taxpayers are required to deduct research or experimental expenditures over a five-year period. Research or experimental expenditures that are attributable to research conducted outside the U.S. are required to be deducted over a 15-year period.
New Provision: This provision allows taxpayers to immediately deduct domestic research or experimental expenditures paid or incurred in taxable years beginning after December 31, 2024, and before January 1, 2030. This provision includes rules to coordinate the immediate deductibility of domestic research or experimental expenditures with the research credit, rules clarifying the treatment of foreign research or experimental expenditures, and other coordinating changes.”
It appears that we will continue to amortize the 2022-2024 capitalized R&D over 5 years but begin full deduction of 2025’s R&D. Anything could change between now and when it becomes law.
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