The new R&D law in the US has faced criticism for overly broad language that could result in many software development companies having to amortize their costs over five years.
This change could lead to software development shifting to other countries with better R&D credits, such as the United Kingdom. The law could also negatively impact creative development in future-thinking technologies like AI and blockchain and lead to layoffs in the tech industry.
Furthermore, there are many complications and unanswered questions regarding the application of this law, and a repeal proposal has not gained much traction. The author warns that without major action from Congress, there may be a massive die-off of tech companies, particularly in the blockchain industry, due to the current fundraising challenges caused by increased interest rates, the crypto winter, and the Silicon Valley Bank failure.
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