State tax implications of section 174 and tax year 2023 readiness

Host: Alexis Morrison-Howe, principal, Deloitte Tax LLP

Presenters: Ian Gilbert, senior manager, Deloitte Tax LLP
                       Fred Thomas, principal, Deloitte Tax LLP
                       Troy Teschke, partner, Deloitte Tax LLP

1.0 Overview CPE credit | Taxes

The updates to tax regulations under section 174 (IRS Notice 2023-63) introduces guidance as to how taxpayers can deduct research and experimental expense under section 174. The potential state tax implications of this guidance should be considered. We’ll discuss:

• Jurisdictions that do not conform with section 174, have elective conformity, or have other considerations that should be analyzed
• Guidance issued by states and the impact
•  Leveraging section 174 analysis to identify indirect tax exemptions that may be applicable to broader groups of assets