NEW Tax Bill Could Send These Software Stocks Soaring
Big Beautiful Tax Breaks Coming To Big Tech ...
Big Tech …
Big Taxes Tax Breaks.
Big distractions.
One of the beautiful things about President Trump is he creates distractions.
To use a military term … a smoke screen.
Legacy media finds something that gets clicks and attention.
Everyone rages out for 24 hours.
The cycle repeats.
Meanwhile, as each week passes, you forget what made people angry 7 days ago.
As the media is spoon serving the public another Trump gaff.
Smart investors are getting rich.
There’s big money to be made if you stay focused.
Everyone talks about tariffs.
But the One Big Beautiful Bill Act is moving through Congress.
This will be President Trump’s only big law in four years.
That’s right.
This is it.
Unlike tariffs or executive orders that can be wiped away by a new president … or a judge.
This bill matters.
It has major tax breaks and incentives.
These will last for years.
I think it’s a great chance for investors.
Which is why I outlined the depreciation law that is set to change too.
I’ve already recommended one stock from the list to subscribers and it’s up about 20%.
Most media coverage around the Big Beautiful Bill will be geared toward taxes paid by people.
As investors, the companies we invest in immediately benefit from tax breaks.
Lower taxes, more profits … higher stock prices.
Today, I want to focus on one tax break.
This one helps big tech companies a lot.
In 2016 Big Tech was public enemy #1 for President Trump.
During his 1st term President Trump passed a significant tax bill called The Tax Cuts and Jobs Act of 2017.
It took aim at big tech in a subtle way.
Starting in 2022, tech firms had to spread R&D costs over five years.
For foreign R&D, it was 15 years.
This was bad news.
It meant that if you spent $1M in cash for software development expenses in any given year, you could only show 200K in expenses for that year.
What happened since 2022?
Large tech companies have cut hundreds of thousands of jobs.
With software and development roles being the main target.
The One Big Beautiful Bill changes this.
From 2025 to 2029, tech companies can deduct R&D costs right away again.
This includes software development costs.
A new rule, Section 174A, makes this clear.
It applies to U.S.-based R&D.
Things you can’t deduct for are costs for land, buildings, or oil and gas exploration.
But software work qualifies.
This is huge for tech firms.
They can hire more coders since the cost is 100% tax deductible.
Combine this with 100% tax deductions for equipment and it will be a big tech spending spree.
For premium subscribers I will outline how this is great news for the two software firms we have recommended.
These two stocks are set to benefit in a major way.
That’s because this rule doesn’t just apply to in-house software development.
Think about it …
Meta, Microsoft, and Google will still need to hire coders and will only immediately benefit from the tax break (and cloud computing contracts).
For software firms that build software … this is a gold rush.
Non-tech companies … think financial institutions, health care companies and retailers hire firms to build their software.
This bill means they can write-off software development costs they outsource to United States software firms!
This comes as many non-tech firms like financial institutions, retailers, health care companies and other businesses start to adopt AI in a major way.
I was already bullish AI software stocks.
That’s because the supply of Nvidia GPUs is accelerating.
But now that companies can write-off 100% of the costs associated with building the software …
This locks in demand for the next several years!
Your game plan is to find leading software stocks that aren’t already overvalued.
I have already recommended 2 and on the premium side I will provide a list of other software stocks that once the valuation pulls in will be a clear buy.
The key thing to do during the next 4 years is focus on what matters.
The media needs clicks.
You need money.
Freaking out about what Trump is doing on a daily basis is profitable if you’re the New York Times.
As investors, we need to stay focused on the long term.
This Big Beautiful Bill contains many tax breaks and incentives that are great for stocks.
Let’s stay focus and make some great investing decisions.
PS: Can You Please Follow Me Across Social Media?
https://lnk.bio/equityempire
Colin