Three bills spark hope for a Section 174 repeal

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June 27, 2023

Three bills spark hope for a Section 174 repeal.

Until then, 174 compliance requirements remain for the September deadline.

There’s lots of buzz surrounding Section 174 and whether the House will reinstate expensing instead of amortizing for R&D costs. At first, many industry experts and those in Washington thought that 174 would have been repealed in Fall 2022 during budget reconciliation or later with the budget ceiling negotiation. But that did not happen.

House representatives in both parties are showing support for the following bills that could retroactively restore expensing of R&D costs under Section 174.

  • The Build It in America Act
  • American Innovation and Jobs Act
  • American Innovation and R&D Competitiveness Act of 2023

However, whether and when these bills will be passed is still unknown. So where does that leave taxpayers?

Currently, Section 174 compliance law states that research expenses must be accounted for and amortized. With 174’s broad definition of research expenses, utilizing an R&D tax service will be a vital tool for calculating your 174 expenditures, and developing your required 174 expense amortization schedule and Section 41 R&D credit.

At Ayming USA, our experts will work with your team on all levels to support you throughout the calculation process from beginning to end. R&D tax incentives give innovative companies the opportunity to fund development and continued growth. We’d like to help you claim the most of these tax incentives for the activities you already carry out.

With tax season fast approaching, Ayming’s new Rapid Claims process may be the service you need. Just in time for the upcoming tax deadline! To learn more about research expenses accounting or to see if you qualify for Rapid Claims, contact Ayming’s experts today for a free consult.


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