26 USC 174A - Domestic research or experimental expenditures

U.S Code last checked for updates: Aug 15, 2025

§ 174A.

Domestic research or experimental expenditures

(a)

Treatment as expenses

(b)

Domestic research or experimental expenditures

(c)

Amortization of certain domestic research or experimental expenditures

(1)

In general

At the election of the taxpayer, made in accordance with regulations or other guidance provided by the Secretary, in the case of domestic research or experimental expenditures which would (but for subsection (a)) be chargeable to capital account but not chargeable to property of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion), subsection (a) shall not apply and the taxpayer shall—

(A)

charge such expenditures to capital account, and

(B)

be allowed an amortization deduction of such expenditures ratably over such period of not less than 60 months as may be selected by the taxpayer (beginning with the month in which the taxpayer first realizes benefits from such expenditures).

(2)

Time for and scope of election

(d)

Special rules

(1)

Land and other property

(2)

Exploration expenditures

(3)

Software development

(Added Pub. L. 119–21, title VII, § 70302(a), July 4, 2025, 139 Stat. 190.)

cite as: 26 USC 174A