1545-BQ18 202404 Unified Agenda of Federal Regulatory and Deregulatory Actions 1545 Internal Revenue Service IRS 1500 Department of the Treasury TREAS Research and Experimentation Expenses

Section 174 requires taxpayers to amortize specified research or experimental expenditures ratably over a 5-year period (or a 15-year period in the case of specified research and experimental expenditures that are attributable to foreign research), beginning with the midpoint of the taxable year in which the specified research or experimental expenditures are paid or incurred. Further, any amount paid or incurred in connection with the development of any software is treated as a research or experimental expenditure.

]]> Substantive, Nonsignificant Previously Published in The Unified Agenda Proposed Rule Stage No No 26 CFR 1 26 U.S.C. 7805 26 U.S.C. 174 Pub. L. 115-97 sec. 13206 No NPRM 07/00/2024 REG-115449-21 (NPRM) Drafter attorney: Bruce C. Chang (202) 317-4870, John M. Deininger (202) 317-3686 Reviewer attorney: Deena Devereux (202) 317-4602 Treasury attorney: Shamik Trivedi (202) 622-6248, Heather Harman (202) 622-2623 and Dan Penrith (202) 679-2039 CC:ITA Undetermined None No No No No Bruce Chang Attorney 1545 Internal Revenue Service IRS 202 317-4870 bruce.c.chang@irscounsel.treas.gov 1111 Constitution Avenue NW, Washington DC 20224 John Deininger M. Attorney 1545 Internal Revenue Service IRS 202 317-6853 855 591-7868 john.m.deininger@irscounsel.treas.gov 1111 Constitution Avenue NW, Washington DC 20224