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In short, section 174[0].

It pushed almost all SWE jobs to be classified as R&D jobs, which changed how taxes are calculated on companies.

They have an example at [0], but I'll copy it here. For a $1mm income, $1mm cost of SW dev, with $0 profit previously you paid $0 in tax (your income was offset by your R&D costs). Now it would be about $200k in taxes for 5 years, as you can't claim all of the $1mm that year anymore.

[0]: https://blog.pragmaticengineer.com/section-174/



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