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Research and experimental expenditures may be deferred and amortized ratably over a period of not less than 30 months.

a-true
b-false

User Mgamba
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1 Answer

5 votes

Final answer:

The claim about deferring and amortizing research and experimental expenditures over a period of not less than 30 months is false. Instead, firms can reduce their tax liabilities through the R&E tax credit for conducting R&D.

Step-by-step explanation:

The statement about whether research and experimental expenditures may be deferred and amortized ratably over a specified period of not less than 30 months is false. According to the United States tax policy, firms undertaking research and development (R&D) can receive tax incentives, such as the research and experimentation (R&E tax credit), to lower their tax liabilities based on the amount of R&D conducted. This policy aims to stimulate private sector investment in R&D by providing a cost-effective approach for businesses to invest in innovation without direct governmental oversight of specific projects.

User Jmlevick
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