Starting on January 1st, 2022 R&E expenses are not currently deductible. They need to be capitalized and amortized over 5 and 15 years if research is done inside or outside the US respectively.
R&E expenditures are research and development costs in the experimental or laboratory sense, which includes all costs that are incidental to the development or improvement of a product (Code Sec. 174). Expenditures qualify as research and development costs in the experimental or laboratory sense if they are for activities intended to discover information that eliminates uncertainty as to the Read More