The immediate effect of this is that one of my customers simply cranked up the amount they can spend on R&D this year by the amount of the tax savings. Which is substantial, because they were only planning to expense 20% of what they would pay us, and budget paying about 25% in income taxes on the rest.

So out of $100,000, that’s $17,600 more in spending, or a 17.6% increase. And they can expense that extra $17,600 too.