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A comment on America Underestimates the Difficulty of Bringing Manufacturing Back. Parent comment

Re:America Underestimates the Difficulty of Bringing Manufac... by like_any_other on Wednesday April 16, 2025 @11:15AM (#43706562)
> R&D is a cost center that can no longer be written off of a company’s taxes.

Can you elaborate on this? It was my understanding a company only pays taxes on profit. So isn't the revenue that goes into R&D effectively taxed at 0%, since at that point it's not yet profit? I.e. only dividend payouts get taxed.

[ Parent | on HN ]
Re:America Underestimates the Difficulty of Bringing Manufac... by kevin_thibedeau on Wednesday April 16, 2025 @12:31PM (#43707381)
2017 Tax Cuts and Jobs Act made it less beneficial to use R&D for tax credits because they had to be amortized over five years. Not good when you're an MBA looking to financially engineer your way into a fat bonus.
[ Parent | on HN ]