changes in treatment of R&D expensing/amoritization as relates to development of software product

Please clear up confusion resulting from conversation with a friend.  We both build companies that develop software products.  He insisted that the changes will no longer allow expensing of software development.  I said, that might be if you outsource over seas or even use contractors.  However, if the developers are full time employees then aren't their salaries expenses just like any other salary?