Prior to 2022, companies could deduct qualified research and experimentation expenses immediately. Under the Tax Cuts and Jobs Act, such expenses are subject to a five-year amortization period (15 years for foreign research). New IRS guidance details how businesses should handle specified research or experimentation (SRE) expenditures for tax years ending after Sept. 8, 2023. It includes how to determine the appropriate amortization period and which expenses qualify. The guidance also explains the treatment of unamortized SRE expenditures if property is disposed of, retired or abandoned during the amortization period. See Notice 2023-63: https://bit.ly/45OOInX
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