Senators Hassan, Young bill to support startup R&D
Bill aims to restore tax incentives, expand business eligibility
U.S. Senators Maggie Hassan, D-NH, and Todd Young, R-IN, reintroduced the bipartisan American Innovation and Jobs Act to support research and development (R&D) investments by innovative small businesses and startups.
Currently, companies and startups investing in R&D can claim tax incentives that help them to invest in developing new products that lead to additional jobs and a stronger economy. The Act builds on this by expanding the refundable R&D tax credit and extending it to more startups and small businesses. In addition, the bill reverses a change in the 2017 tax law that limits companies from fully deducting R&D investments each year.
“When American companies invest in research and development to develop new products and technologies, it stimulates our economy, promotes job growth, and helps us compete with foreign adversaries,” said Senator Hassan. “I was proud to lead the effort to double the R&D tax credit for small businesses and startups in the Inflation Reduction Act, and I am continuing the push with Senator Young to further expand these tax incentives. Our bipartisan bill will help more startups and businesses invest in research and development, and also ensure that they can fully deduct research and development expenses each year. I urge my colleagues on both sides of the aisle to support this bill that will spur innovation.”
The American Innovation and Jobs Act aims to accomplish the following:
- Restore incentives for long-term R&D investment by ensuring that companies can fully deduct R&D expenses each year.
- Raise the cap over time for the refundable R&D tax credit for small businesses and startups.
- Expand eligibility for the refundable R&D tax credit so that more startups and new businesses can use it.
“We have heard from businesses across a wide array of industries throughout New England that the five-year amortization of R&D expenses that recently went into affect is causing tremendous challenges and stifling innovation,” said James T. Brett, president and CEO of the New England Council. “We are grateful to Senator Hassan for her leadership in proposing this legislation to address this issue and allow New England businesses to continue to invest in groundbreaking research and development.”
