Section 174 · Developer Finance

Stop Overpaying Taxes on Software R&D

Section 174 now forces developers to amortize R&D costs over 5–15 years instead of expensing them immediately. Calculate exactly how much more you owe — and track when Congress might fix it.

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Impact Calculator

Enter your R&D spend and see your exact tax hit under current Section 174 rules vs. prior law.

Legislative Tracker

Live status of bills that would restore immediate expensing — know before your accountant does.

Scenario Planner

Model different income levels, entity types, and filing years to optimize your strategy.

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  • Section 174 impact calculator
  • Legislative bill tracker
  • Multi-year scenario planner
  • Save & export calculations
  • Email alerts on bill updates
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FAQ

What is Section 174 and why does it matter?

Before 2022, developers could deduct R&D costs in the year they occurred. The Tax Cuts and Jobs Act changed this — now those costs must be amortized over 5 years (domestic) or 15 years (foreign), dramatically increasing taxable income for software developers.

Who is this tool for?

Freelance developers, dev consultants, and small software companies who write off R&D expenses and want to understand their real tax exposure and plan accordingly.

Will Section 174 be repealed or fixed?

Several bipartisan bills have been introduced to restore immediate expensing. Our legislative tracker monitors their progress in real time so you know when — and if — relief is coming.