“To amend the Internal Revenue Code of 1986 to restore the deduction for research and experimental expenditures.”
No CRS summary available for this bill.
This section revises the tax treatment of research and experimental expenditures under Section 174 of the Internal Revenue Code to permit taxpayers to deduct such expenditures currently if paid or incurred in connection with a trade or business (previously, mandatory capitalization and amortization over five years for domestic research and 15 years for foreign research) or, at election, to amortize them ratably over a period of not less than 60 months beginning with the month benefits are first realized. The section excludes from this treatment expenditures for land, depreciable or depletable property, or mineral exploration; limits eligibility to reasonable amounts; and makes conforming amendments to the research tax credit under Section 41 and deduction coordination rules under Section 280C, as well as a clerical amendment to the table of sections.