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A comment on Tell HN: Help restore the tax deduction for software dev in the US (Section 174). Parent comment

Re:Tell HN: Help restore the tax deduction for software dev ... by waynesonfire on Monday June 09, 2025 @06:47PM (#44230416)
So, after 5 years, they can deduct the entire salary.. this just seems like an incentive to promote long-term employment. Doesn't seem like a bad incentive.
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Re:Tell HN: Help restore the tax deduction for software dev ... by optymizer on Monday June 09, 2025 @07:25PM (#44230740)
Well, we had massive layoffs, so I don't think the incentives worked.
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Re:Tell HN: Help restore the tax deduction for software dev ... by jmtulloss on Monday June 09, 2025 @08:27PM (#44231189)
No, this is not how it works. They can still deduct the entire first year of salary even if the person is let go, as that salary is considered a capital expense. There is no incentive to keep the person on payroll because of this policy.
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