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The OBBBA (“Big Beautiful Bill”) suspends amortization requirements for domestic R&D expenditure, and explicitly allows domestic software development as an R&D
by Reason077 1y ago
The OBBBA (“Big Beautiful Bill”) suspends amortization requirements for domestic R&D expenditure, and explicitly allows domestic software development as an R&D expenditure eligible for immediate expensing.
The new rules would apply from 2025 to Dec 31, 2029:
https://www.crowell.com/en/insights/client-alerts/house-committee-passes-part-of-big-beautiful-bill-containing-noteworthy-improvements-to-research-and-development-incentives-for-companies https://www.crowell.com/en/insights/client-alerts/house-comm...
- Terr_ 1y agoThat "suspends" should be understood as "continues to hold-hostage" / "renews as a time-bomb to screw over some other party".
- sherburt3 1y agoRemoving it would make Congress less powerful, and we can't have that now can we.
- rurp 1y agoIf anything it has been the opposite problem, with modern congresses having been more than happy to delegate away their powers. You might have heard the recent tariff news for example.
- sherburt3 1y agoPresidencies last 4-8 years, congressional careers last decades.
- Braxton1980 1y agoAvg for house is 12.5 and 8.5 in senate
- sherburt3 1y agoMitch McConnell has been serving in the senate since 1985. He's been a senator longer than most Americans have been alive. I think the outliers are far more consequential than the averages in this case.
- Braxton1980 1y agoSince each person has one vote why would outliers matters? It doesn't seem that length of terms doesn't even help with leadership roles The Democrats minority leader is Hakeem Sekou Jeffries who was elected about 12 years ago and Mike Johnson has been in the house for 8~ years. There are R and D members who have been in the house longer. * or whatever the threshold is
- Dylan16807 1y agoModern being what? The main tariff laws in question happened 50+ years ago. The republicans in congress have been going out of their way to not interfere, but that's significantly different from creating new delegations.
- panzagl 1y agoHow could Congress get less powerful than now?
- coliveira 1y agoThat's how they like, more time to campaign and less work that may be impopular. Thinking about it, the US government is going exactly the same way of the Roman republic.
- AStonesThrow 1y ago> US government is going exactly the same way of the Roman republic. We're gonna conquer and annex Egypt? What an awesome time to be alive!
- mr_toad 1y agoThat was the first imperial conquest. The republic had been gobbling up states long before that.
- Reason077 1y agoEgypt? No. But how about Greenland, Canada, and Panama?
- AStonesThrow 1y agoKayfabe
- avsteele 1y agoThat isn't the reason. They sunset in the bill so it has a lower CBO score (which calculates costs out to 10 years). If you sunset in the bill after 5 years, even if you know it will get renewed, the apparent cost goes down. Get it?
- bombcar 1y agoThe CBO score is a perfect example of the metric becoming the measure and teaching to the test.
- packtreefly 1y ago"ThE tAx CuT pAyS fOr ItSeLf"
- tomrod 1y agoThat would be the one positive I have heard regarding OBBB. This should be put into its own bill.
- madaxe_again 1y agoThat isn’t how legislation is passed. If anything, it needs a section about acceptable tar shingle application standards for roofs within 6 nautical miles of any heliport operated in a subarctic area on the west cost. Then it’s looking like a bill.
- teeray 1y agoYou forgot renewing the Patriot Act :)
- aetherson 1y agoThere's a little of this, but more so, you only get one reconciliation bill per year. And anything that's not a reconciliation bill has to be bipartisan.
- AnonymousPlanet 1y agoAnd it gets so bizzare that even legislators have to laugh when they read it out loud, like in this case here in Switzerland: https://www.youtube.com/watch?v=S9hztUCq15o https://www.youtube.com/watch?v=S9hztUCq15o
- runako 1y agoJust last year, Congress snapped to attention and wrote and quickly passed a bill to ban the eminent national security threat of a video-sharing app. That bill doesn't do anything else. Just a reminder that Congress, even now, can rapidly act on a laser focus when it is sufficiently motivated.
- lostlogin 1y agoIs there a good summary of that episode somewhere? I've tried to read up on it as I don't really understand how it was an eminent (imminent?) security threat.
- gigatexal 1y agoThis is a highlight in an otherwise shitty bill. I saw let Trump’s ugly bill die and then a small fix up to the tax code could be this. Should be able to pass.
- yieldcrv 1y agoThis bill is goated for upper middle class and tech and defense sector And I’m tired of pretending like we aren’t going to be beneficiaries Every Congress increases the debt, we can acknowledge that the cuts they picked are going to wreck the lower class especially with the medicaid, we can acknowledge that it won’t meet its goals of cuts but are you guys just scared to acknowledge its going to super charge things that you are a beneficiary of too? so busy saying it just benefits billionaires as if we’re trying to avoid guillotines. not gonna happen and many people here are going to try to take advantage of new programs
- Hammershaft 1y agoI agree but I think the huge cuts across public research & development basically hurt everybody in the long term.
- TechDebtDevin 1y agoAnd China will pick up the slack.
- vkou 1y ago> This bill is goated for upper middle class and tech and defense sector No, it's not, because giving its authors any power or wins or ability to execute on their agenda is disastrous for nearly everyone, including tech and the middle class. The only people that its illegal acts are good for is a tiny minority of crooks, fascists, and oligarchs. Given the firehose of illegal stuff they are doing that is impossible to push back on, it is utterly imperative to push back on every little thing that is possible to push back on, and to hold consent hostage to an end to the former. You're letting them burn your house down because they promised you a bottle of whiskey.
- slipnslider 1y agoRepealing SB174 has bipartisan support. The house already passed its repeal but it died in Senate because a separate took (that also repealed it) took its place but that separate bill stalled out. 174 is so small it can't go through both chambers on its own so it needs to get attached a larger bill like OBBA. It's unfortunate because it appears both sides want this repealed to allow immediate amortization of domestic R&D expenses. https://abgi-usa.com/section174/latest-and-greatest https://abgi-usa.com/section174/latest-and-greatest
- cibyr 1y agoIt's so depressing to hear that congress can't even do small things that everyone agrees upon.
- dragonwriter 1y agoIf everyone agreed on it, Congress would have no problem doing it (Congress itself, after all, is a subset of "everyone".)
- cj 1y agoIt’s possible for everyone to want something, while simultaneously being incapable of getting it done.
- _dark_matter_ 1y agoThat's still not true. As long as a group within "everyone" (or multiple groups) decide that their support is required to pass the bill, they can suddenly demand concessions and the bill now gets complicated with good and bad.
- dragonwriter 1y ago> As long as a group within "everyone" (or multiple groups) decide that their support is required to pass the bill, they can suddenly demand concessions Well, yes, but then everyone doesn't really want it, do they? Someone wants something else, and wants that something else enough that it is worth jeopardizing the supposedly universal goal for it.
- CardenB 1y agoIt's perhaps noteworthy that OBBBA is not the first bill to attempt to revert this tax law. It's simply the latest. There have been other attempts to revert section 174. Other attempts that come to mind: 1. Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) 2. American Innovation and R&D Competitiveness Act of 2025 (H.R. 1990) This article is informative: https://www.cebn.org/media_resources/section-174-sign-on-letter/?utm_source=chatgpt.com https://www.cebn.org/media_resources/section-174-sign-on-let...
- pzo 1y ago> domestic software development So now it seems its like a pseudo tariff against any other freelancers and producers for software outside of US.