WASHINGTON, D.C. – Last month, U.S. Rep. Randy Feenstra (R-Hull) helped introduce, alongside U.S. Rep. Ron Estes (R-KS), the American Innovation and R&D Competitiveness Act, which would make immediate research and development expensing permanent for small businesses, manufacturers, biofuels producers, and the farming community.
“In the face of record inflation and economic uncertainty, immediate research and development expensing is vital to Iowa’s manufacturers, biofuels producers, main street businesses, and agriculture community. This provision – which lapsed at the conclusion of 2022 – allows business, industry, and agriculture to immediately deduct costly yet vital R&D investments that spur innovation, lower input costs, and accelerate productivity,” said Rep. Feenstra. “I am proud to work with my colleagues on the House Ways and Means Committee to make immediate R&D expensing permanent and provide much-needed certainty for our business and agriculture community. Without this simple fix, our manufacturers face over $32 billion in new taxes this year alone, American agriculture would be saddled with $400 million in increased tax liabilities, and China will continue to outpace our investment in innovation. We cannot allow that to happen.”
This legislation specifically repeals a provision in the Tax Cuts and Jobs Act that required the amortization of R&D expensing over a five-year period beginning in 2022.
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Issues: Economy
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