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Fire up the espresso, folks, because we're digging into tech tax deductions in the big,

beautiful bill.

From American public media, this is Marketplace Tech.

I'm Megan McCarty Carrino.

Bear, Buried inside the one big beautiful bill, the president signed into law on July 4th, is a wonky tax change that could be a boost for the tech industry.

Back in 2017, when the first Trump tax cuts passed, they included a

provision to change how firms were allowed to deduct research and development costs. Instead

of deducting them all at once, when a company made an investment, those deductions had to be

spread out over five years, starting in 2022. Which made R&D more expensive, says Rebecca Lester, who teaches

accounting at Stanford. She recently co-authored a study showing the 2022 change led to reductions

in R&D spending and employment that could have contributed to the slowdown in the tech

industry starting in late 2022.

That provision, though, has now been reversed in the new tax law.

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