On March 17, 2023, US Senators Maggie Hassan and Todd Young reintroduced their American Innovation and Jobs Act. This bi-partisan legislation promotes innovation by encouraging new and established businesses to invest in scientific research and development (R&D) of new technologies.
In the past, businesses could immediately deduct the full value of their R&D investments when they file taxes each year. However, The Tax Cuts and Jobs Act (TCJA) of 2017 required companies to spread the deduction over a 5-year period, starting in 2022. This was largely seen as a retrograde tax policy that created cash-flow problems and substantially higher tax bills.
The American Innovation and Jobs Act was originally introduced by Senator Young in 2021 and 2022, and now includes co-sponsors from both sides of the aisle.
If you have questions about how the proposed American Innovation and Jobs Act would impact your business, leave a comment below or feel free to contact me directly. I’m happy to help!