NEC Urges the House to Pass the American Innovation and R&D Competitiveness Act
On April 27, 2023, The New England Council wrote to the region’s House delegation to urge them to support the bipartisan American Innovation and R&D Competitiveness Act, which was recently introduced by New England’s own Representative John Larson (D-CT), in partnership with Representative Ron Estes (R-KS).
This legislation would reverse a provision of the Tax Cuts and Jobs Act of 2017 that went into effect for the 2022 tax year, requiring businesses must amortize research & development (R&D) expenses over a period of five years. Specifically, this bill would allow businesses to continue to fully deduct R&D expenses each year. In its letter, the Council noted that the new amortization requirement will ultimately make R&D more costly to conduct in New England and across the U.S., and will negatively impact America’s global competitiveness.
Earlier this year, the Council endorsed similar bipartisan legislation introduced in the Senate by Senator Maggie Hassan (D-NH) and Senator Todd Young (R-IN).
For more information on the Council’s Technology & Innovation Working Group, please contact Mariah Healy.