Comment by rtpg
I don't get this. You speculative spend 1 million dollars on a new thing. It fails. In one universe you get to deduct 1M from your profit in year 1. In another you get to deduct 1M from your profit, but over 5 years.
I understand the pain for small companies and it's a strain on cash flow, but for larger companies with "real" revenue streams and profitability is this that much worse?
The cynical thing might be that this helps out big corps by preventing smaller corps from spending their way to success.
It increases the real cost of engineers. The government is keeping that money interest free, which means the company is losing the time value of money.
In addition, it gives companies less flexibility to manipulate their tax burden and cash flow, which makes engineering a less appealing investment to the bean counter.