"A thing that is causing huge pain at many tech companies in the US - with little talk about it.

An IRS tax code change in Section 174. This change eliminates the ability for businesses to deduct R&D as an expense.

Hear of lots of layoffs directly because of this, as a start.

The tax code change means that R&D (basically, employing devs) can be amortized over 5 years. 15 with overseas costs.

US companies without large cash buffers to take this sudden hit are thus firing overseas development as well as in the US.

Very bad time for this tax change.

So, why is no one talking about this?

Because it doesn't impact most VC-funded companies, or massively profitable ones. So most of Silicon Valley!

If your company made a loss in 2021 & 2022: no change.

If you are printing money: more expenses in 2022-2026, but you can manage."

More here : https://www.eisneramper.com/insights/blogs/tax-blog/changes-re-expense-capitalization-tax-blog-0923/