Taxpayers may elect to treat research or experimental expenditures incurred in connection with a trade or business as currently deductible expenses, and not chargeable to their capital account. Under generally accepted accounting principles, at least some of these expenses would otherwise be treated as capital expenditures and depreciated or amortized over a period of years. The current deduction constitutes a tax expenditure, resulting in a deferral of tax similar to an interest-free loan
Origin: IRC § 174
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2019
FY2020
FY2021
FY2022
FY2023
Corporate Excise Tax
Accelerated Deductions from Gross Income
2.308
Expensing Research and Development Expenditures in One Year
Taxpayers may elect to treat research or experimental expenditures incurred in connection with a trade or business as currently deductible expenses, and not chargeable to their capital account. Under generally accepted accounting principles, at least some of these expenses would otherwise be treated as capital expenditures and depreciated or amortized over a period of years. The current deduction constitutes a tax expenditure, resulting in a deferral of tax similar to an interest-free loan
<a href="http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000174----000-.html" target="_blank">IRC § 174</a>
45.4
42.5
32.2
17.0
3.2
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