Senate Includes Young-Hassan Provision in Budget Bill to Spur U.S. Innovation through Maintaining Full Deductibility of R&D Costs
WASHINGTON – Today, U.S. Senators Todd Young (R-Ind.) and Maggie Hassan (D-N.H.) successfully secured a bipartisan provision in the Senate budget package to promote U.S competitiveness and support American innovation. The amendment is supported by National Association of Manufacturers (NAM), the largest manufacturing association in the United States.
“Now, more than ever, we must find bipartisan solutions to stimulate our economy, get Americans back to work, and ensure we maintain our position on the world stage as the leader in scientific and technological innovation. This amendment would preserve funding related to U.S. competitiveness and innovation by retaining the full expensing for research & development and expanding tax incentives for small businesses.Immediate R&D expensing incentivizes long-term investments in innovation and technological breakthroughs. By passing this amendment, we can make sure the United States continues to be the world leader in this space,” said Senator Young on the Senate floor.
The bipartisan amendment builds on efforts to strengthen support in the U.S. tax code for start-ups and other U.S. companies investing in research and development (R&D) by expanding the R&D tax credit for start-ups and preserving other R&D tax incentives. In doing so, the amendment better ensures U.S. companies can stay competitive in the global marketplace and outcompete China.
Senator Hassan also said in her remarks on the Senate floor, “The R&D tax credit provides critical support and tax relief to the small businesses and start-ups that power our economy. These businesses are job creators, helping spur innovation in New Hampshire and across the country. This bipartisan amendment with Senator Young would build on efforts to expand the R&D tax credit for start-ups while protecting the tax incentives that allow U.S. companies, start-ups, and small businesses to stay competitive in our global marketplace and outcompete China.”
Today’s amendment follows Senators Young and Hassan’s ongoing efforts to support research and development. They previously introduced the bipartisan American Innovation and Jobs Act to extend an expiring provision in the 2017 tax law that allows companies to fully deduct R&D investments each year. Their bill also doubles the refundable R&D tax credit and expands it to more startups and small businesses.
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