Larson, Estes, Introduce Legislation to Encourage Investment in Innovation
Washington, D.C. - Today, Rep. John B. Larson (CT-01) and Rep. Ron Estes (KS-04) introduced the American Innovation and Competitiveness Act (AICA).
“Research and development are a driver of jobs and innovation both in Connecticut and across our nation. 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 supporting 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 Congressman Ron Estes 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.”
“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. “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. I look forward to working with Rep. Larson and our colleagues to pass this bipartisan bill.”
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 AICA 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.