U.S. Reps. Ron Estes (R-KS) and John Larson (D-CT) have joined 60 House of Representatives colleagues in reintroducing legislation to bolster research and development efforts.
Estes and Larson recently detailed the American Innovation and R&D Competitiveness Act (H.R. 2673), which bill proponents said would amend the Internal Revenue Code of 1986 to restore the deduction for research and experimental expenditures, permanently enabling immediate research and development funding dating back to last year, when the provision expired.
“Research and development is critical for our American economy, and it’s imperative that we give American innovators the tools and incentives to conduct that R&D right here in the United States,” Estes said. “More R&D here at home means more jobs now and in the future. Rep. Larson and I know that businesses and manufacturers in our districts and across the country need immediate R&D expensing, and we’re joined by a number of our colleagues on both sides of the aisle that want to see this bill passed.”
Immediate R&D spending incentivizes long-term investments in innovation and technological breakthroughs by allowing a business to deduct research and development activities in the tax year that they occur.
“Research and development play an integral role in creating good-paying jobs across the country, especially as we rebuild our economy from the impacts of the pandemic,” Larson said. “If we do not act to fix the R&D tax deduction, there will be serious repercussions on jobs and our economy. Rep. Estes and I joined together on this legislation to ensure the R&D tax deduction does what it was designed to do: support American businesses and workers as they develop technologies of the future.”