Swipe Files - 📂 This new law could kill your SaaS ☠️

I interrupt our normal SaaS marketing scheduling with an urgent message that affects everyone who works in this industry.

Companies are at risk. Jobs are at risk. The entire industry is at risk.

A new amendment to the Tax Cuts and Jobs Act that wasn't even intended to go into effect (because, you know... government 🤷‍♂️) is threatening to increase the tax burden of technology companies by an order of magnitude.

It's called Section 174 and there's only one way to reverse it.

It went into effect in 2022, which means that it will materially affect you right now.

The TLDR of why it's so bad is that software development costs, including salaries, now has to be spread out over 5 years rather than deducted in full annually.

So instead of turning a minor profit for the year, you would likely show a huge profit instead and thus have a large corporate tax bill to pay.

Or instead of breaking even for the year, you're now showing a profit, and again, now you have a large corporate tax bill to pay.

Or... let's just say that you showed a loss for the year (something most startups do when they've raised investment). Nope, now you'll likely show a profit and you know what I'll say next.

It's terrible and it doesn't make any sense.

Here are some tangible examples:

Landon Bennett @LandonB32 Just got our taxes done. I lied. Section 174 increases our taxable income for 2022 by 466% not 350%. WTF. Why are tech entreprenuers/VC not talking about this? This is insane. twitter.com/LandonB32/stat… Landon Bennett @LandonB32 Now that the SVB issue is resolved for the depositors can we talk about the other startup killer in 2023? I know founders who are having to take out 6/7-figure loans to pay the tax bill they just found out they now owe. This change will likely cause more layoffs in tech too. March 15th 2023 12 Retweets 45 Likes

Ian Landsman @ianlandsman (slightly) simplified example impact of section 174 tax code change on a small software company. WAKE UP PEOPLE and contact your accountant TODAY. pic.twitter.com/0Ib7WMa3tR February 21st 2023 13 Retweets 52 Likes

Sign this petition

​Michele Hansen (co-founder of Geocodio) has been heading up the charge, and garnering support from software businesses.

Please sign her petition here:
👉 https://ssballiance.org/​

We're trying to get 1,000 signatures before Michele sends this to Congress on April 10th.

All you have to do is fill out a short form.

Please don't put this off. 🙏

—Corey