This course provides an in-depth analysis of the legislative framework surrounding Section 174, focusing on the implications for manufacturing and software companies. Attendees will learn about the tax treatments available for R&D costs, the specific challenges manufacturing and software companies face under current tax law, and best practices for approaching Section 174. The presentation will explore current legislative stagnations and offer strategic compliance and tax planning recommendations. By evaluating case studies and legislative text, participants will better understand how these changes affect R&D taxation and be pleased to learn that 174 does not have to be as hurtful as advertised. 

Learning Objectives:

• Describe the current legislative environment and prepare for potential changes that could affect Section 174


• Identify the distinctions between R&D performed under contract, which may qualify as COGS, and internal R&D, which must be amortized under Section 174


• List the specific amendments related to software development and how they affect the accounting of R&D expenses


• Recommend how to protect clients and businesses from penalties through proper disclosure and adherence to best practices in R&D reporting