Good news for the tech job market buried in the “big beautiful bill”

[Sam480]

 

[Tellugodu]

I don’t think massive Covid hiring will be back anytime soon (if it ever happens).

[Mr Mirchi]

17 minutes ago, Tellugodu said:

I don’t think massive Covid hiring will be back anytime soon (if it ever happens).

covid oka charithra...manchi jarigindhi chedu jarigindhi......balayya thiraga rasthademo gani history.....covid abeyy no chance...

 

balayya vs covid

[fasak_vachadu]

20 minutes ago, Tellugodu said:

I don’t think massive Covid hiring will be back anytime soon (if it ever happens).

onlu titizens ke ata 

 

kotha uscis director vachi first day ne opt cpt lepi 10gutunadu ....

[Mr Mirchi]

example:

 

 

CodeSpark Inc., a small tech startup, hires 10 software developers.
They each earn $100,000 a year, so total cost = $1 million on developer salaries.

 

🔙 Before the tax change (old rule):

• The IRS made companies spread the deduction over 5 years.

• So in Year 1, CodeSpark could only deduct $200,000.

• Let’s say the company pays 21% in taxes.

• $200,000 × 21% = $42,000 in tax savings for Year 1.

➡️ So even though they spent $1M, they only saved $42K on taxes that year.

---

✅ After the tax change (new rule):

• CodeSpark can now deduct the full $1 million in Year 1.

• $1,000,000 × 21% = $210,000 in tax savings immediately.

➡️ That’s a $168,000 bigger tax break — right away!

 

 

What does CodeSpark do with that extra $168K?

• Hire another developer

• Offer raises or bonuses

• Invest in new tech features or tools

Because companies now get bigger tax savings right away, they’re more likely to:

• Hire more developers

• Keep current staff

• Spend more on tech and innovation

Which is why this is considered good news for tech jobs.

[summer27]

good post...worth keeping an eye on how this plays out..

[Paamu]

12 minutes ago, Mr Mirchi said:

example:

 

 

CodeSpark Inc., a small tech startup, hires 10 software developers.
They each earn $100,000 a year, so total cost = $1 million on developer salaries.

 

🔙 Before the tax change (old rule):

• The IRS made companies spread the deduction over 5 years.

• So in Year 1, CodeSpark could only deduct $200,000.

• Let’s say the company pays 21% in taxes.

• $200,000 × 21% = $42,000 in tax savings for Year 1.

➡️ So even though they spent $1M, they only saved $42K on taxes that year.

---

✅ After the tax change (new rule):

• CodeSpark can now deduct the full $1 million in Year 1.

• $1,000,000 × 21% = $210,000 in tax savings immediately.

➡️ That’s a $168,000 bigger tax break — right away!

 

 

What does CodeSpark do with that extra $168K?

• Hire another developer

• Offer raises or bonuses

• Invest in new tech features or tools

Because companies now get bigger tax savings right away, they’re more likely to:

• Hire more developers

• Keep current staff

• Spend more on tech and innovation

Which is why this is considered good news for tech jobs.

without need why they hire. Unnollaki raise ichi.... goddu chaakiri chepistaru. 

[DonnyStrumpet]

This will certainly bring back jobs from offshore. Big blow to Indian economy then. 

[BacklogBadham]

40 minutes ago, Mr Mirchi said:

example:

 

 

CodeSpark Inc., a small tech startup, hires 10 software developers.
They each earn $100,000 a year, so total cost = $1 million on developer salaries.

 

🔙 Before the tax change (old rule):

• The IRS made companies spread the deduction over 5 years.

• So in Year 1, CodeSpark could only deduct $200,000.

• Let’s say the company pays 21% in taxes.

• $200,000 × 21% = $42,000 in tax savings for Year 1.

➡️ So even though they spent $1M, they only saved $42K on taxes that year.

---

✅ After the tax change (new rule):

• CodeSpark can now deduct the full $1 million in Year 1.

• $1,000,000 × 21% = $210,000 in tax savings immediately.

➡️ That’s a $168,000 bigger tax break — right away!

 

 

What does CodeSpark do with that extra $168K?

• Hire another developer

• Offer raises or bonuses

• Invest in new tech features or tools

Because companies now get bigger tax savings right away, they’re more likely to:

• Hire more developers

• Keep current staff

• Spend more on tech and innovation

Which is why this is considered good news for tech jobs.

Really good info. It will applicable visa holders as well. So anduke they are asking for more H1B. Good days are ahead visa holders ki. Hang in there all. Citizens will be in bad spot but off shore will be gone slow ga. More H1B coming I guess. Remmtance on visa holders and now this all in this bill will help big tech and start up for sure. Now make sense. 

The R&D tax deduction and credit are available for qualified research expenses paid to both U.S. citizens and visa holders, as long as the work is performed in the United States and the wages are reported on U.S. payroll (Form W-2)

The law does not require employees to be U.S. citizens—visa holders (such as H-1B, J-1, etc.) who are legally employed and paid through U.S. payroll also qualify.

The key requirement is that the research activities and related payroll expenses occur within the U.S.

 

[BacklogBadham]

20 minutes ago, DonnyStrumpet said:

This will certainly bring back jobs from offshore. Big blow to Indian economy then. 

More visa coming here. And take their money with remitance. Good for America and visa holders. 

[7691]

1 hour ago, Mr Mirchi said:

example:

 

 

CodeSpark Inc., a small tech startup, hires 10 software developers.
They each earn $100,000 a year, so total cost = $1 million on developer salaries.

 

🔙 Before the tax change (old rule):

• The IRS made companies spread the deduction over 5 years.

• So in Year 1, CodeSpark could only deduct $200,000.

• Let’s say the company pays 21% in taxes.

• $200,000 × 21% = $42,000 in tax savings for Year 1.

➡️ So even though they spent $1M, they only saved $42K on taxes that year.

---

✅ After the tax change (new rule):

• CodeSpark can now deduct the full $1 million in Year 1.

• $1,000,000 × 21% = $210,000 in tax savings immediately.

➡️ That’s a $168,000 bigger tax break — right away!

 

 

What does CodeSpark do with that extra $168K?

• Hire another developer

• Offer raises or bonuses

• Invest in new tech features or tools

Because companies now get bigger tax savings right away, they’re more likely to:

• Hire more developers

• Keep current staff

• Spend more on tech and innovation

Which is why this is considered good news for tech jobs.

500k petti AI city amaravathi lo 20 devs ni hire chesukovachu kada tammudu. They get double work force and save few hundred grand.

i will talk to all ceo’s

[Hitman]

Hopefully will see 2nd and 3rd job opportunities coming soon 

[Sam480]

Just now, Hitman said:

Hopefully will see 2nd and 3rd job opportunities coming soon 

Hope everyone has a job first

[Mr Mirchi]

2 hours ago, Paamu said:

without need why they hire. Unnollaki raise ichi.... goddu chaakiri chepistaru. 

hire chesukoni companies vuntavi..hike iche companies vuntavi..fire cheyakunda vunchukone companies vuntavi..asalu emi cheyani companies vuntavi

[andhra_jp]

Activities Not Considered Software Development

The Notice also provides some clarification on what activities will not be considered activities treated as software development. For software that is developed for use in a taxpayer’s trade or business, training on use of the software; maintenance (including diagnosing and debugging) on the software that does not rise to the level of an upgrade or an enhancement; data conversion; and software installation are not considered software development activities. For software that is developed for sale or licensing to others, marketing and promotional activities; maintenance on the software that does not rise to the level of an upgrade or enhancement; distribution activities (such as allowing remote access); and customer support are not considered software development activities.