A motion to instruct conferees of the America COMPETES/USICA competitiveness bills by Senator Maggie Hassan (D-NH) was agreed to 90-5 on Wednesday, May 4, 2022. The bill called for preserving R&D expensing, rather than the IRC Section 174 five-year amortization that took effect this year, and an expansion of the R&D tax credit for small businesses. The vote showed support for modifying the unfavorable change to R&D expensing under the TCJA of 2017, but the motion is nonbinding.

According to the American Innovation and Jobs Act proposed by Senator Maggie Hassan,

“Companies and startups investing in R&D can either claim a tax credit or deduct their investments, which helps them to invest in developing new, innovative products that lead to additional jobs and a stronger economy. The American Innovation and Jobs Act doubles the refundable R&D tax credit and extends it to more startups and small businesses. It also reverses a change in the 2017 tax law to ensure that companies can continue to fully deduct R&D investments each year.”

KBKG’s R&D Tax Credit experts are available should you have questions about this latest update and would like an assessment of potential benefits. Contact us to get started today.

About the Authors

jon tucker webJonathan Tucker – Principal
Jonathan Tucker is a Principal for KBKG’s R&D Tax Credit Consulting practice. Based in Atlanta, GA, Jon has over eighteen years of experience providing federal business tax advisory services to clients in various industries, including technology, manufacturing (including heavy, light, and paper and pulp), transportation, healthcare, retail, and consumer products, hospitality, media and entertainment, financial, and other professional services industries. » Full Bio

American Innovation and Jobs Act Would Advance U.S. Leadership in Semiconductor Research (March 16, 2021) https://www.hassan.senate.gov/news/in-the-news/american-innovation-and-jobs-act-would-advance-us-leadership-in-semiconductor-research