The IRS released an advance version of Notice 2023-63 providing interim guidance intended to clarify the application of section 174, as amended by the “Tax Cuts and Jobs Act” (TCJA).

The notice includes guidance addressing:

• Capitalization and amortization of specified research or experimental (SRE) expenditures under section 174, as amended
• Treatment of SRE expenditures under section 460
• Application of section 482 to cost-sharing arrangements involving SRE expenditures