U.S. Rep. Ron Estes (R-KS) on Sept. 27 introduced a bipartisan bill that would restore the federal deduction for research and development (R&D) expenditures.
“The American Innovation and Competitiveness Act will encourage research and development in the U.S. that will lead to new breakthroughs and jobs for our country,” said Rep. Estes.
The congressman cosponsored H.R. 4549 with bill sponsor U.S. Rep. John Larson (D-CT) to repeal a section of the Tax Cuts and Jobs Act that requires businesses to amortize R&D expensing over five years beginning in 2022.
According to the lawmaker’s staff, immediate R&D expensing incentivizes long-term investments in innovation and technological advances by allowing businesses to deduct R&D activities in the tax year that they occur.
“This legislation will build on the progress of the Tax Cuts and Jobs Act to further grow our economy by restoring immediate R&D expensing that has long supported jobs and innovation,” Rep. Estes said last week.
H.R. 4549 has been referred for consideration to the U.S. House Ways and Means Committee.