Townhall – 174 Amortization & the Interaction with the R&D Tax Credit

We are bringing inundated with questions related to the pending §174 changes. We are hopeful we will see a change to the law before 3/15; however, we want to be prepared if a legislative fix doesn’t pass before the initial deadlines. Regardless of whether a taxpayer claims the R&D credit, they are still required to amortize the R&D expenses. Consequently, taking the R&D tax credit is in their best interest to offset the income from the amortization.