https://blog.pragmaticengineer.com/section-174/ https://blog.pragmaticengineer.com/section-174/ In short, you used to be able to deduct the entirety of an SWE

https://blog.pragmaticengineer.com/section-174/ https://blog.pragmaticengineer.com/section-174/ In short, you used to be able to deduct the entirety of an SWE R&D costs in the year it was paid, but now you must amortize it, like you would with machinery. That means that some companies are incurring "gains" that must be taxed, whereas before they wouldn't for that year.