Doesn't this incentivize outsourcing or fractional work to some degree, because that would still be counted as regular expenses?
If the accounting is correct, a purchase of $1MM of software should be equal to paying $1MM to develop it in house, or paying a contractor $1MM to develop it for you.
Similarly, if a shipping company wanted a new boat, it would be the same if they built it in house or if they had a shipbuilder make it.