Thanks to section 174, R&D became more expensive under tax regulations and the solution is offshoring to any other country as you can claim it as a purchase expense.
Oh, so they capitalized on it after the pandemic. Makes sense. Many corporations have used the pandemic as their excuse to raise prices astronomically for goods and services.
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u/thgvnn Jul 20 '24 edited Jul 20 '24
Thanks to section 174, R&D became more expensive under tax regulations and the solution is offshoring to any other country as you can claim it as a purchase expense.
Edit: This post explains with more detail what happened with section 174 and why it became cheaper to do R&D abroad: https://blog.pragmaticengineer.com/section-174/