After 5 years of constant expenses, the deductions match the costs. If expenses diminish, deductions exceed costs.
-> this is bad (in the short term) for companies that are growing.
It takes 5 years to fill the pipeline, so even if the steady state would be fine, getting to that state might be impossible.
No! Any company (with software development expenses) for the first 5 years after Sec 174 went into effect!
There is no rational basis for this tax change it was a vindictive attack on blue states in the first Trump admin and an attack on California and SV in particular along with the SALT tax changes.
But I agree that much of the outrage seems due to a confusion that 80% of the deduction is lost completely (vs deferred).