Larson, Estes Reintroduce Bipartisan Bill to Restore Immediate Research & Development Expensing

Washington, D.C. – Today, Reps. John B. Larson (CT-01) and Ron Estes (KS-04) reintroduced the American Innovation and R&D Competitiveness Act with Reps. Suzan DelBene (WA-01), Rudy Yakym (IN-02) and 64 additional original cosponsors. The bill, which has received broad bipartisan support, permanently allows for immediate research and development expensing looking back to 2022, when the provision expired. 

“Research and development play an integral role in creating good-paying jobs across the country, especially as we work to strengthen our economic competitiveness,” said Larson. “The 2017 Tax Law’s elimination of immediate R&D expensing has made it more difficult for businesses to invest in developing the technologies of the future, including small business owners and engineers in my district. I am thrilled to partner with Reps. Estes, DelBene, Yakym, and so many of my colleagues on both sides of the aisle to fix the R&D tax deduction so American businesses and workers can continue to be the world leader in technology and innovation.” 

"Research and development in the United States does more than just advance innovation, it provides good-paying jobs for Americans across the country and strengthens our nation," said Estes. "There is bipartisan support for immediate expensing of R&D costs because it's good for the workforce and the economy, brings new products and services to the marketplace, and ensures that our country remains the leader in innovation around the world. For the past several years, U.S. job creators and innovators have been unable to immediately expense R&D costs in the year they occur, and as a result we've seen domestic research and development slow while other countries incentivize and benefit from expanded R&D. A significant number of workers, community leaders, businesses and lawmakers on both sides of the aisle agree that we must address R&D expensing this year." 

“Washington has been at the forefront of advanced technology development, and the R&D credit has had a significant impact on our region’s success.  Restoring the R&D credit is imperative for businesses to have the tools they need to invest in cutting-edge research and the development of new technologies. This legislation will ensure that the U.S. continues to be a global leader in innovation while creating more jobs and boosting our economy,” said DelBene. 

"Manufacturing is the backbone of Indiana's economy, from medical device development to boats, RVs, and everything in between," said Yakym. "Research and development fuels economic growth, creates jobs, and keeps America competitive globally. This bipartisan, commonsense bill is a win for manufacturers, innovators, and hardworking Hoosiers. I look forward to permanently extending the R&D tax credit to ensure the United States remains the best place to invest and do business." 

"R&D is the lifeblood of manufacturing innovation. For nearly 70 years, manufacturers in the U.S. could fully deduct their R&D expenses in the year incurred—but companies now must spread their R&D deductions over several years, increasing costs and harming manufacturers' ability to invest in innovation. The American Innovation and R&D Competitiveness Act would restore immediate R&D expensing, supporting manufacturers' efforts to invest in American jobs and innovation," saidCharles Crain, Managing Vice President of Policy, National Association of Manufacturers. "Manufacturers commend Reps. Estes and Larson and Sens. Young and Hassan for introducing this important bill and urge Congress to act urgently to pass pro-growth tax legislation this year." 

"The American Innovation and R&D Competitiveness Act offers a much-needed boost for the equipment manufacturing industry at a time when America faces adverse inflation and strained supply chains. By restoring strong incentives for research and development expenditures, this legislation will encourage more equipment manufacturers to develop the best and most advanced products in the United States, driving domestic innovation and growth across the industry," saidKip Eideberg, Senior Vice President of Government and Industry Relations, Association of Equipment Manufacturers (AEM). "AEM applauds Representatives Ron Estes and John Larson for introducing the bipartisan American Innovation and R&D Competitiveness Act and urges Congress to pass it as soon as possible." 

You can read the full text of the bill HERE. 

Original cosponsors of the bill include Reps. Jodey Arrington (TX-19), Aaron Bean (FL-04), Don Beyer (VA-08), Vern Buchanan (FL-16), Mike Carey (OH-15), Danny K. Davis (IL-07), Suzan DelBene (WA-01), Randy Feenstra (IA-04), Michelle Fischbach (MN-07), Brian Fitzpatrick (PA-01), Kevin Hern (OK-01), Steven Horsford (NV-04), Mike Kelly (PA-16), David Kustoff (TN-08), Darin LaHood (IL-16), Nicole Malliotakis (NY-11), Carol Miller (WV-01), Max Miller (OH-07), Blake Moore (UT-01), Nathaniel Moran (TX-01), Jimmy Panetta (CA-19), David Schweikert (AZ-01), Terri Sewell (AL-07), Adrian Smith (NE-03), Lloyd Smucker (PA-11), Greg Steube (FL-17), Claudia Tenney (NY-24), Beth Van Duyne (TX-24), Rudy Yakym (IN-04), Gabe Amo (RI-01), Jake Auchincloss (MA-04), Andy Barr (KY-06), Joyce Beatty (OH-03), Suzanne Bonamici (OR-01), Julia Brownley (CA-26), Salud Carbajal (CA-24), Earl “Buddy” Carter (GA-01), Emanuel Cleaver (MO-05), Gerry Connolly (VA-11), Angie Craig (MN-02), Sharice Davids (KS-03), Chuck Edwards (NC-11), Valerie Foushee (NC-04), John Garamendi (CA-08), Josh Harder (CA-09), Diana Harshbarger (TN-01), Chrissy Houlahan (PA-06), Bill Huizenga (MI-04), Sara Jacobs (CA-51), Ro Khanna (CA-17), Raja Krishnamoorthi (IL-08), Ted Lieu (CA-36), Tracey Mann (KS-01), Jennifer McClellan (VA-04), Rich McCormick (GA-07), Dan Meuser (PA-09), John Moolenaar (MI-02), Joseph Morelle (NY-25), Seth Moulton (MA-06), Kevin Mullin (CA-15), Greg Murphy (NC-03), Joe Neguse (CO-02), Chris Pappas (NH-01), Hillary Scholten (MI-03), Eric Swalwell (CA-14), and Dina Titus (NV-01). 

Immediate R&D expensing 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. The American Innovation and R&D Competitiveness Act would reinstate immediate research and development expensing, an option that was eliminated for businesses of all size as a result of the 2017 Tax Law, which Rep. Larson opposed, that was signed into law by then-President Donald Trump.