Companies large and small that perform contract research or develop their own software are facing a dilemma, thanks to recent changes in the tax code that require them to amortize these expenses. The IRS recently issued an interpretation of federal tax code section 174 that provides a method to account for these changes, but every company has to navigate its specific circumstances.

Particularly hard hit are tech and life sciences startups that rely on government grants. Instead of using grants from the NIH, DoD or DoE to get their technology to a proof of concept, these early stage companies now have to consider this grant money as income for tax purposes – even though the startups may be years away from generating revenue.

The impact on many biotech, med device, healthcare IT and cleantech companies – the lifeblood of the Triangle’s vibrant tech economy – has been to wipe out cash reserves, risk tax penalties, and introduce an additional element of uncertainty in a high-risk venture.

Join Jeremy Berger, Director, Federal Tax Specialty, at Forvis as he reviews the changes to the tax code and leads a peer-to-peer roundtable discussion on how companies, founders and investors are coping with this dramatic turn of events.