Prior to tax year 2022, for federal purposes
taxpayers could elect to immediately deduct
research and experimental expenditures that
they would otherwise have had to capitalize
and deduct over a period of 5 years. Starting
with tax year 2022 all expenditures for
research conducted in the U.S must be
capitalized and deducted over 5 years.
Expenditures incurred outside the U.S. must be
capitalized and deducted over 15 years.
Massachusetts generally conforms to the
federal rules for deducting research and
experimental expenditures. This conformity
resulted in a Massachusetts tax expenditure for
tax years prior to 2022.
Origin: IRC § 174
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2020
FY2021
FY2022
FY2023
FY2024
Personal Income Tax
Accelerated Deductions from Gross Income
1.309
Expensing Research and Experimental Expenditures in One Year
Prior to tax year 2022, for federal purposes<BR>taxpayers could elect to immediately deduct<BR>research and experimental expenditures that<BR>they would otherwise have had to capitalize<BR>and deduct over a period of 5 years. Starting<BR>with tax year 2022 all expenditures for<BR>research conducted in the U.S must be<BR>capitalized and deducted over 5 years.<BR>Expenditures incurred outside the U.S. must be<BR>capitalized and deducted over 15 years.<BR>Massachusetts generally conforms to the<BR>federal rules for deducting research and<BR>experimental expenditures. This conformity<BR>resulted in a Massachusetts tax expenditure for<BR>tax years prior to 2022.
<a href="https://www.law.cornell.edu/uscode/text/26/174" target="_blank">IRC § 174</a>
1.2
0.8
0.6
0.2
0.0
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