NTA2312. Balancing R&D Capitalization with Credits

One of the last provisions under the Tax Cuts and Jobs Act of 2017(TCJA) to take effect were the changes to the treatment of research and experimental expenditures under IRC Section 174. The new law results in a dramatic shift in the timeline over which these expenditures are deductible and without substantial regulation leave significant uncertainty for tax practitioners to navigate. While the Credit for Research & Development under IRC 41 was not changed by the TCJA, the new landscape puts a new premium on understanding the credit and the most recent developments relating to claiming the credit.

Learning Objectives:

• Determine the impact of the changes to IRC Section 174 under the Tax Cuts and Jobs Act which took effect on January 1, 2022
• Distinguish the interplay of IRC Section 174 with the Research and Development Tax Credit under IRC Section 41 and recent developments