U.S. Sen. Todd Young (R-IN) helped lead a bipartisan contingent in urging Senate leaders 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 spending for R&D investments.
“Starting this year, innovative U.S. companies lost the ability to immediately write-off the full value of their investments in R&D,” Sen. Young and his 14 colleagues wrote in a March 4 letter sent to U.S. Senate Majority Leader Chuck Schumer (D-NY) and Senate Minority Leader Mitch McConnell (R-KY).
“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,” they wrote.
The senators also wrote it is crucial that Congress further promote U.S. competitiveness by strengthening the R&D tax credit claimed by innovative startups and small businesses across the country.
Specifically, the lawmakers pointed out that the Senate in August 2021 passed an amendment by voice vote to expand the R&D tax credit for small businesses and to preserve full and immediate R&D write-offs for U.S. innovators. Language for the amendment came from the bipartisan American Innovation and Jobs Act, S. 749, which Sen. Young cosponsored in March 2021 alongside bill sponsor U.S. Sen. Maggie Hassan (D-NH) to support R&D investments by innovative small businesses and startups.
“We urge you to include similar provisions in any upcoming legislative package considered by Congress,” according to their letter, which was also signed by Sen. Hassan and lawmakers including U.S. Sens. Roger Wicker (R-MS), Jerry Moran (R-KS), and Joni Ernst (R-IA).