Founder Resource

The R&D Section 174 Readiness Guide.

What changed, who it actually hits, and the planning moves available before the next estimated payment is due.

Section 174 forced founders to capitalize R&D expenditures that used to be deducted in the year incurred. For a pre-profit or thinly-profitable startup, the cash hit can be the difference between extending runway and raising a bridge round. This guide is the planning playbook.

• Plain-language explanation of the 174 capitalization rules and the 5 versus 15 year split.
• Which expenditures qualify, which do not, and how to document the line.
• Coordination with the R&D credit so the structure pays for itself where possible.
• A sequence for amortization, entity choice, and quarterly estimates under the new regime.