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 experiment expenditures, and to prohibit the retroactive application of revenue ruling numbered 73-395.

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

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