A bill to amend section 174 of the Internal Revenue Code of 1954 to make clear that product development and improvement costs of publishers are research or experimental expenditures, and to prohibit the retroactive application of Revenue Ruling No. 73-395.

Provides, under the Internal Revenue Code, that product development and improvement (including writing, editing, compiling, illustrating, and designing) costs of publishers are research or experimental expenditures.

Prohibits the retroactive application of Revenue Ruling Numbered 73-395.