this post was submitted on 11 Jun 2025
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The hidden time bomb in the tax code that's fueling mass tech layoffs (qz.com)
submitted 4 days ago by MuskyMelon@lemmy.world to c/technology@lemmy.world
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[–] double_quack@lemm.ee 16 points 3 days ago* (last edited 3 days ago)

The delayed change to Section 174 — from immediate expensing of R&D to mandatory amortization, meaning that companies must spread the deduction out in smaller chunks over five or even 15-year periods — was that kind of provision. It didn’t start affecting the budget until 2022, but it helped the TCJA appear “deficit neutral” over the 10-year window used for legislative scoring.

maybe the key paragraph