FAQ

Section 174 of the U.S. tax code requires businesses to capitalize and amortize R&D expenses over 5 years (domestic) or 15 years (foreign), rather than deducting them immediately.

Software developers, startup founders, and finance professionals who want to estimate the tax impact of Section 174 on their R&D spending.

The calculator divides your total R&D expenses by the selected amortization period (5 or 15 years) to determine the annual deduction. It then estimates the tax impact by applying your tax rate.

Yes. The 5-year period applies to domestic R&D, while the 15-year period applies to foreign R&D. Select the appropriate period based on your situation.

This tool provides estimates for planning purposes only. Consult a tax professional for official tax advice and filing.