2022›T accounting period used and effective date of the change in
Changes in Law and Regulations
0925 Publ 16 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States
maximum expense deduction increased from $1,050,000 to $1,080,000. This limit is reduced by the amount by which the cost of Section 179 property placed in service during the tax year exceeds $2,700,000.
Research and Development Expenditures
Under the Tax Cuts and Jobs Act (TCJA), Section 174 was amended to disallow full expensing of R&D expenditures. Beginning January 1, 2022, domestic R&D expenditures are required to be capitalized and amortized over a 5-year period. Foreign expenditures are to be amortized over a 15year period.
See Section 4, Explanation of Terms, for more detailed explanations and definitions of the terms used in this report.
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