R&D Update: What’s Going On With Section 174?

One of the provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) that had a major impact on businesses was Section 174: Amortization of Research & Experimental Expenditures (IRC Section 174). The Internal Revenue Service (IRS) recently released Rev. Proc. 2023-11 in December 2022 to update the IRC Section 174 guidelines.

Martin Karamon, Tax Credits Incentives & Advisory Practice Leader, joins this edition of the Tax Beat podcast with Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, to share his insights on Section 174.

Listen in to this episode as the TCIA team discusses:

•  2:30 – Section 174 Costs
• 3:50 – History on Section 174
• 6:13 – Impact of Section 174
• 11:42 – New Revenue Procedure 

Relevant Guidance:

• R&D Tax Credits: 2022 Year in Review
• Planning for Capitalization of Research and Experimentation (R&E) Costs