Case study says:

"In order to begin immediate production of Persistence, the design technology and the manufacturing specifications for a new hiking shoe would be purchased from an outside source for $50 million. This outlay was to take place immediately and be expensed immediately for tax purposes."

1. Does this indicate that technology and manufacturing would be deducted before or after tax? (ie., before or after EBIT)?
2. Why would this not be considered capital expenditure and thus be deducted after EBIT?