02/25/2021 | Press release | Distributed by Public on 02/25/2021 09:46
Washington, D.C. - Today, Reps. John B. Larson (CT-01), Jimmy Panetta (CA-38), Suzan DelBene (WA-01), Ron Estes (KS-04), Darin LaHood (IL-18), and Jodey Arrington (TX-19) introduced the American Innovation and R&D Competitiveness Act.
'Jobs across the nation and Connecticut are driven by innovative research and development. That's why I was proud to have led the effort to enact a permanent extension of the R&D tax credit in 2015. This has provided American businesses with the certainty needed to invest here at home and support good paying jobs,' said Rep. Larson. 'Unfortunately, due to a provision in the Tax Cuts and Jobs Act, businesses will have to amortize R&D expensing over a 5-year period beginning in 2022. I am proud to work on a bipartisan basis with Reps. Panetta, DelBene, Estes, LaHood, and Arrington to repeal this provision, which will ensure that the R&D tax credit, along with the ability to deduct R&D expenses, remains an effective engine for American innovation.'
'Central Coast businesses need the appropriate federal support to persist and even grow during this pandemic. That's why I introduced this bill with Rep. John Larson that would make it quicker and easier for small businesses to write off taxes for the research and development investments that are needed to recover and thrive,' said Rep. Panetta. 'Our legislation would not only help our businesses on the Central Coast, it also would foster job creation, support more research and development opportunities, and help drive our economic recovery across the nation.'
'Washington has one of the most advanced technology economies in the country, driven in part by the benefits of the R&D credit, but the COVID-19 pandemic continues to harm our local and national economies and slow growth. We need repeal the sunset of the credit and allow companies around the country to continue taking full advantage of the R&D credit to drive investments in the technologies of tomorrow as we build back better from this crisis,' said Rep. DelBene.
'As we reopen America, I'm confident the resilience of American workers and entrepreneurs will help our economy recover,' said Rep. Estes. 'Permanent, immediate research and development expensing is a critical tax code reform that will encourage innovation and job creation in the United States.'
'Innovation is a key engine to the American economy. As Illinois and our country reopen, investing in research and development will be a critical component to putting businesses of all sizes in a position to succeed,' said Rep. LaHood. 'This bipartisan bill will provide relief and incentives that will spur job creation throughout Illinois and our country.'
'I am proud to join my colleagues in introducing the bipartisan American Innovation and Competitiveness Act to keep America at the forefront of research and development. Promoting investment in innovation will generate new job growth and pave the way for technological breakthroughs and life-saving cures that will improve the quality of life for Americans,' said Rep. Arrington.
Immediate R&D expensing incentivizes long-term investments in innovation and technological breakthroughs by providing a business an opportunity to deduct research and development activities in the tax year that they occur. The American Innovation and R&D Competitiveness Act will ensure that the United States continues to be the world leader in innovation by repealing a section of the Tax Cuts and Jobs Act (TCJA) that requires amortized of R&D expensing over five years beginning in 2022.