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OBBB signed: Reinstates immediate expensing for U.S.-based R&D

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Re: OBBB signed: Reinstates immediate expensing for U.S.-based R&D

#11

Post by n_u »

Den_VR wrote: post #5
macinjosh wrote: post #4

Earlier quoted context omitted.

Awesome, this literally could not be better for American tech workers.

So payroll for R&D is now entirely tax deductible? Businesses get to choose to pay taxes or do R&D for themselves?

It’s more about whether or not the company has taxable profits for that year (importantly these are not the same as real profits). I would read this article to understand more about how being forced to amortize tax deductions for expenses affects a business’s taxes.

https://news.ycombinator.com/item?id=44180533

more info here too

https://news.ycombinator.com/item?id=44226145

Re: OBBB signed: Reinstates immediate expensing for U.S.-based R&D

#12

Post by beebmam »

Izikiel43 wrote: post #9
beebmam wrote: post #6

Earlier quoted context omitted.

There's also H-1B (and other worker visa) restrictions/costs imposed. Overall, quite good for the American tech worker

Source?

Extra $250 fee for visa applications: https://judiciary.house.gov/media/press-releases/big-beautif...

3.5% remittance fees on sending money out of the US: https://www.globalimmigrationblog.com/2025/06/what-are-the-i...

Also (in above source), no ACA subsidies for H-1B visa holders (and others), which likely means employers they will have to pay more for health care if they want to cover their immigrant workers

Re: OBBB signed: Reinstates immediate expensing for U.S.-based R&D

#13

Post by alphazard »

Den_VR wrote: post #5
macinjosh wrote: post #4

Earlier quoted context omitted.

Awesome, this literally could not be better for American tech workers.

So payroll for R&D is now entirely tax deductible? Businesses get to choose to pay taxes or do R&D for themselves?

Tax deductible is a weird way of phrasing it. It's not like these software companies were counting their money at the end of the quarter, and then deciding to do R&D instead of paying taxes. They had already paid R&D expenses to build the product, which gained them revenue. Previously they weren't allowed to actualize the cost of R&D all at once, so the business could be losing money, and still have to pay taxes on top of the loss (which is nuts).

This fixes the problem, so now if you spend $100 on software developers, and you make $100 from the software, then you have $0 income, instead of $80 income.

Re: OBBB signed: Reinstates immediate expensing for U.S.-based R&D

#15

Post by tomrod »

lazide wrote: post #7
Den_VR wrote: post #5

Earlier quoted context omitted.

So payroll for R&D is now entirely tax deductible? Businesses get to choose to pay taxes or do R&D for themselves?

Either scenario taxes are paid - it’s just how and over what time period.

In the long run, we are all dead. 20% depreciation per year for any software developed is a burden for all but the largest of companies.

Re: OBBB signed: Reinstates immediate expensing for U.S.-based R&D

#16

Post by tomrod »

alphazard wrote: post #13
Den_VR wrote: post #5

Earlier quoted context omitted.

So payroll for R&D is now entirely tax deductible? Businesses get to choose to pay taxes or do R&D for themselves?

Tax deductible is a weird way of phrasing it. It's not like these software companies were counting their money at the end of the quarter, and then deciding to do R&D instead of paying taxes. They had already paid R&D expenses to build the product, which gained them revenue. Previously they weren't allowed to actualize the cost of R&D all at once, so the business could be losing money, and still have to pay taxes on t…

It was also weird because people pay money on income (dividend, partner payment, SCorp share, etc.) anyway, so in a long term view this incentivized companies to keep fewer software engineers on staff.

Re: OBBB signed: Reinstates immediate expensing for U.S.-based R&D

#17

Post by tareqak »

beebmam wrote: post #12
Izikiel43 wrote: post #9

Earlier quoted context omitted.

Source?

Extra $250 fee for visa applications: https://judiciary.house.gov/media/press-releases/big-beautif... 3.5% remittance fees on sending money out of the US: https://www.globalimmigrationblog.com/2025/06/what-are-the-i... Also (in above source), no ACA subsidies for H-1B visa holders (and others), which likely means employers they will have to pay more for health care if they want to cover their immigrant workers

Quoting all the fees in https://judiciary.house.gov/media/press-releases/big-beautif...

> Expansion of Immigration Fees:

> $1,000 asylum application fee — first in U.S. history

> $1,000 fee for individuals paroled into the U.S.

> $3,500 fee for sponsors of unaccompanied children

> $5,000 fee for sponsors of unaccompanied children who fail to appear in court

> $550 fee for work permits

> $500 application fee for Temporary Protected Status (TPS)

> $400 fee to file a diversity immigrant visa application

> $250 fee to register for the Diversity Visa Lottery

> $250 visa integrity fee

> $100 year fee while asylum applications remain pending

> $100 fee for continuances granted in immigration court

> $5,000 fee for individuals ordered removed in absentia

> $1,500 fee to adjust status to lawful permanent resident (green card)

> $1,050 fee for inadmissibility waivers

> $900 fee to appeal a decision by an immigration judge

> $900 fee to appeal a decision by DHS

> $1,325 fee to appeal in practitioner disciplinary cases

> $900 fee to file motions to reopen or reconsider

> $600 application fee for suspension of deportation

> $600 application fee for cancellation of removal (permanent residents)

> $1,500 application fee for cancellation of removal (non-permanent residents)

> $30 fee for Form I-94 (arrival/departure record), up from $6

Re: OBBB signed: Reinstates immediate expensing for U.S.-based R&D

#19

Post by xp84 »

tomrod wrote: post #14

If correct, this is a good thing on a generally bad, overstuffed bill. Immediate expensing never should have been changed in the first place, and it was always weird seeing people twist themselves in knots defending it.

It’s an overstuffed bill because nobody will compromise on anything so the only way to pass a bill that has anything even remotely controversial to either party is one reconciliation bill a year.

Re: OBBB signed: Reinstates immediate expensing for U.S.-based R&D

#20

Post by earth2mars »

tomrod wrote: post #14

If correct, this is a good thing on a generally bad, overstuffed bill. Immediate expensing never should have been changed in the first place, and it was always weird seeing people twist themselves in knots defending it.

This. TCJA removed it and OBBBA restored it. What am I missing here
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