We’re happy to share with you that the R&D tax credit has friends in high places! Major Congressional support is lining up to both strengthen, extend, and to expand R&D tax credit.
Recent Press Release About Legislative Package
As reported in a March 4 Senate press release, U.S. Senators Maggie Hassan (D-NH) and Todd Young (R-IN), both members of the Senate Finance Committee, are leading a bipartisan group of senators to adopt an upcoming legislative package that would accomplish two goals:
- expand the research & development (R&D) tax credit, and
- guarantee that businesses can fully deduct their R&D investments each year.
In their 2021 bill, the American Innovation and Jobs Act, Senators Hassan and Young aimed to expand the refundable R&D tax credit for small businesses and startups, while guaranteeing that companies can continue to fully deduct R&D investments each year. Last August, the senators led bipartisan efforts to include a bipartisan provision in the potential Senate budget package that reflected these proposed new measures. Currently they’re pushing for their bill to be a part of an upcoming legislative package.
Recently, they wrote in a letter to Senate Majority Leader Chuck Schumer and Senate Minority Leader Mitch McConnell: “We write to urge you to support U.S. economic competitiveness and innovation in any upcoming legislative package by expanding the research and development tax credit for small businesses and preserving full and immediate expensing for R&D investments.”
As part of its agenda, the bipartisan group is seeking to restore companies’ ability to fully deduct R&D investments each year.
“Unless Congress acts quickly to restore full and immediate expensing for R&D, this change will jeopardize high-paying American jobs and constrain domestic investment in strategically critical technologies,” the senators wrote.
As signatories to the letter, Senators Hassan and Young were joined by Senators Catherine Cortez Masto (D-NV), Roger Marshall (R-KS), Kyrsten Sinema (D-AZ), Marco Rubio (R-FL), Jeanne Shaheen (D-NH), Roger Wicker (R-MS), Dianne Feinstein (D-CA), Jerry Moran (R-KS), John Boozman (R-AR), Jacky Rosen (D-NV), Joni Ernst (R-IA), and Raphael Warnock (D-GA).