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3.2 – IRC Section 174

In 1957, the IRS adopted § 1.174-2(a)(1), which defines the term research or experimental expenditures as expenditures
which represent research and development costs in the experimental or laboratory sense (22 FR 7901 (October 4, 1957)).  It has evolved a bit since then.  Here’s how IRC section 174 is currently organized:

IRC § 174(a) – Treatment as expenses

IRC § 174(b) – Amortization of certain research and experimental expenditures

IRC § 174(c) – Land and other property

IRC § 174(d) – Exploration expenditures

IRC § 174(e) – Only reasonable research expenditures eligible

IRC § 174(f) – Cross references

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