The change in the US tax code now requires software development expenses to be amortized over several years instead of being immediately deducted. This affects companies' financial planning and can increase the financial burden of hiring software engineers.
Many in the tech community, including YC alumni like Luther Lowe, are organizing efforts to reverse this change, seeking to restore the previous tax deduction for software development expenses.
There is significant community support and discussion around this issue, with some arguing that the current tax treatment unfairly targets software developers compared to other professions.
The new rule argues that software development creates long-term assets similar to physical capital goods, which many in the tech industry dispute due to the rapidly changing nature of software and the constant need for updates and maintenance.
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