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Provide for reconciliation pursuant to title II of H. Con. Res. 14Section 70302 › Proposal

A firm may elect to spread the cost over at least 60 months

To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70302, Sec. 70302. Written by .

A firm may elect to spread the cost over at least 60 months

The document says “canWho acts: Secretary of the TreasuryHow: statuteSec. 70302 in the PDF
What the document says

“be allowed an amortization deduction of such expenditures ratably over such period of not less than 60 months as may be selected by the taxpayer”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70302

The section lets a taxpayer elect, under the Secretary's rules, to charge domestic research or experimental expenditures to capital account instead and take an amortization deduction spread evenly over a period of at least 60 months chosen by the taxpayer, beginning with the month benefits are first realized. The election must be made by the return's due date including extensions, must be followed in that year and later years unless the Secretary approves a change, and does not reach costs paid in an earlier year.

What the document actually says

“be allowed an amortization deduction of such expenditures ratably over such period of not less than 60 months as may be selected by the taxpayer”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70302
That sentence, in plain words

The cost may be written off bit by bit. The spread must run at least 60 months. The firm picks how long.

What this is about

The choice must be made by the return date. Once made it must be kept. The Secretary may allow a change later.

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