Most of the tax provisions enacted under the law known as the lax Cuts and Jobs Act (TCJA), P.L. 115-97, became effective on Jan. 1, 2018, such as the 21% corporate tax rate, the $10,000 limitation on the itemized state and local taxes deduction, and the elimination of tax exemptions. However, some of the provisions under the TCJA were not immediately effective but were delayed. One of those provisions was the amortization of research or experimental (R&E) expenditures. Section 13206 of the TCJA amended Sec. 174 to require taxpayers to amortize specified R&E expenditures ratably over a five-year period for domestic expenditures and a 15-year period for specified R&E expenditures attributed to foreign research, using a half-year convention. This provision became effective for tax years beginning after Dec. 31, 2021, and will have a ripple effect in both financial and tax reporting. Legislative proposals with bipartisan support have sought to delay or repeal the amortization of R&E expenses. Notably, the House-passed version of the budget reconciliation bill then known as the Build Back Better Act would have delayed the effective date to amounts paid or incurred in tax years beginning after Dec. 31, 2025. However, this provision did not survive in the version of the reconciliation bill that was enacted in August 2022, the Inflation Reduction Act, P.L. 117-169. Similarly, a repeal provision was included in an early version of the bill that eventually passed as the CHIPS and Science Act, P.L. 117-167 — only to be left out of the enacted version. Although support for modifying the provision remains, and a revision could be advanced as part of an "extender" legisilative package, companies engaged in research and development (R&D) activities should be implementing this significant change. They should also be prepared for effects that amortization of R&E expenditures may have on other tax issues, such as estimated tax payments and year-end tax planning, as well as on financial reporting.