[epr]

Yes, but the main thing here is that ALL software development is now "profit" in the short term. In theory you've developed a capital good that benefits you over time, hence the amortization.

Simplified 2021 example before 174:

    100k Revenue
    100k Software Dev Costs
    No profit or tax

Simplified 2022 example after 174:

    100k Revenue
    100k Software Dev Costs
    90k "profit"
    18.9k taxes

Above example is year one of suddenly having these taxes, because if your software costs are the same or lower over time it gets easier. It's just extremely painful for smaller and especially fast growing companies like startups without a lot of cash, especially when interest rates are so high.

Accountants: If I am wrong about the above, please correct me

[testrun]

The profit is 80k, not 90k, but the principle is correct. This will affect cash flow.