Section 174 is…terrifying. I really hope this gets repealed.

Source: New “Developer Tax” Might Kill Startups Forever (Section 174 Rant)

Via Steven Mitchell

It drives me crazy no one talks about Section 174 of the tax code, the reason why I haven’t hired nor contracted any software developers for more than a year now. It’s not AI taking jobs nor interest rates.

There was a tiny change inserted in the tax law that stated any expenses related to software development including hiring coders must be amortized over five years instead of apply to the current tax year. This means I can’t afford to pay for software developers. This is the real reason for the tech layoffs, and it’s pulling my hair out because no one talks about it.

This could be a big part of what’s causing so few jobs in the tech industry in 2024.