Land and mining costs are out, software development is in
What the document says“any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure.”
The section provides that it does not apply to expenditure on acquiring or improving land, or on property used in the research that is subject to the depreciation allowance under section 167 or the depletion allowance under section 611, though allowances under those sections count as expenditures for its purposes. It also does not apply to expenditure to establish the existence, location, extent or quality of any deposit of ore or other mineral, including oil and gas. Any amount paid in connection with developing software is treated as a research or experimental expenditure.
What the document actually says“any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure.”
Money spent on building software counts as a research cost.
Money spent on land does not count. Nor does money spent looking for ore, oil or gas. Those are ruled out here.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.