There's an R&D tax credit. See [1]. I would aggressively pursue this option. Much better than a deduction anyway.
1: https://www.hklaw.com/en/insights/publications/2023/01/rd-co...
1: https://www.hklaw.com/en/insights/publications/2023/01/rd-co...
> Startups unable to utilize the credit under Section 41 should consider whether an amortizable expense under Section 174 or an immediate deduction under Section 162 is more appropriate.
So, their interpretation seems to be that you have three options.
Though, I'm not sure you can split the credit or carry any forward, etc. Every tax situation is different.
Under the current law you can no longer do both, if you want to take the R&D credit you have to instead amortize the R&E expense under Section 174.
Or from the other comments in this thread it sounds like you can maybe skip the R&D credit and then continue to deduct the R&E expense under Section 162. But it's not clear (to me anyway) whether Section 174 supercedes Section 162 in the case of software development costs, in which case you might no longer be allowed to apply Section 162.