Domestic research costs are those not attributable to foreign research
What the document says“the term `domestic research or experimental expenditures' means research or experimental expenditures paid or incurred by the taxpayer in connection with the taxpayer's trade or business other than such expenditures which are attributable to foreign research”
The section defines domestic research or experimental expenditures as research or experimental expenditures paid or incurred in connection with the taxpayer's trade or business, other than those attributable to foreign research within the meaning of section 41(d)(4)(F) of the Internal Revenue Code of 1986.
What the document actually says“the term `domestic research or experimental expenditures' means research or experimental expenditures paid or incurred by the taxpayer in connection with the taxpayer's trade or business other than such expenditures which are attributable to foreign research”
The term covers research costs of a business. It leaves out costs tied to research done abroad.
The cost must be linked to the firm's trade. Work done abroad falls under a different rule. That rule spreads the cost over 15 years.
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