Section 174 and the Connection to R&D Tax Credits – Hosted by CohnReznick

The new Section 174 law – which has gone into effect for taxable years beginning after Dec. 31, 2021 – was enacted as part of the Tax Cut and Jobs Act and potentially impacts all taxpayers.

The law has far-reaching implications for any company that has qualified research expenditures connected to the Research & Development tax credit or costs categorized as Section 174 expenses. These costs could include utilities, lab materials, attorney fees, depreciation, rent, computer supplies, and others. Under the revised code and regulations, this has become a key topic of concern for many private company leadership teams.