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OBBB signed: Reinstates immediate expensing for U.S.-based R&D

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369 points tareqak | 1 comments | 05 Jul 25 00:24 UTC | HN request time: 0.202s | source
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phtrivier ◴[05 Jul 25 08:16 UTC] No.44471009[source]▶
It was floated a few weeks ago they this tax break's disappearance was responsible for mass lay offs in tech.

Other theory were AI and interest rates.

I'm pretty sure next rounds of layoffs will have another "good reason".

Personally, I'm still partial to my pet and hard to document theory of "when headcounts go down, share prices go up - and past a certain size and age, the goal of a massive corporation is not to build things any more, but to pay for retirements through the resale / buybacks of shares"

But, hey, BBB is singed, so everything will be awesome soon, I suppose ?

replies(2): >>44471320 #>>44471696 #
1. grumple ◴[05 Jul 25 10:33 UTC] No.44471696[source]▶
This tax issue (not a break - normally you can count employees as a businesss expense for the current year, this made software unusual) meant that startups or other tech companies were extremely disadvantaged in the short term, and had to pay way more in taxes than they should have. For startups, having to pay far more in taxes during the first few years of existence is crippling.

This fixes that problem. That encourages both investment in software and encourages software companies to hire.