“Landsman said he is able to tap lines of credit for now, but is paying 9% interest, and he says many other founders he knows don’t have that option.”
Section 174 now makes software companies amortize developer salaries over five years instead of expensing them. One Georgia founder saw taxable income jump 400% and gave up his entire 2022 pay to cover the bill. Big corporations lobbied for a fix and lost, while small shops found out from their accountants this spring. Congress taxed payroll as profit and called it an R&D policy.