Senators Hassan, Young Introduce Bipartisan Bill to Support Innovative Businesses and Startups' Research and Development
WASHINGTON -- U.S. Senators Maggie Hassan (D-NH) and Todd Young (R-IN) reintroduced the bipartisan American Innovation and Jobs Act to support research and development (R&D) investments by innovative small businesses and startups.
Currently, companies and startups investing in R&D can claim tax incentives that help them to invest in developing new, innovative products that lead to additional jobs and a stronger economy. Senator Hassan and Young’s bipartisan American Innovation and Jobs Act builds on this by expanding the refundable R&D tax credit and extending it to more startups and small businesses. In addition, the bill reverses a change in the 2017 tax law that limits companies from fully deducting R&D investments each year.
“When American companies invest in research and development to develop new products and technologies, it stimulates our economy, promotes job growth, and helps us compete with foreign adversaries,” said Senator Hassan. “I was proud to lead the effort to double the R&D tax credit for small businesses and startups in the Inflation Reduction Act, and am continuing the push with Senator Young to further expand these tax incentives. Our bipartisan bill will help more startups and businesses invest in research and development, and also ensure that they can fully deduct research and development expenses each year. I urge my colleagues on both sides of the aisle to support this bill that will spur innovation.”
“Maintaining and encouraging research and development (R&D) activities here in the United States is critical to providing high-quality jobs for Americans and ensuring our country remains competitive with our international rivals, most notably China,” said Senator Young. “Our American Innovation and Jobs Act would ensure businesses can fully deduct R&D expenses each year and expand the R&D tax credit for startups and small businesses. If we want to outcompete and out-innovate the Chinese Communist Party, we must pass this legislation as soon as possible.”
“We have heard from businesses across a wide array of industries throughout New England that the five year amortization of R&D expenses that recently went into effect is causing tremendous challenges and stifling innovation. We are grateful to Senator Hassan for her leadership in proposing this legislation to address this issue and allow New England businesses to continue to invest in groundbreaking research and development,” said James T. Brett, President & CEO, The New England Council.
“For 70 years, America supported innovation through common sense tax policy. It worked. The 2017 tax law prevented companies from fully using R&D tax deductions each year, but thankfully, Senators Hassan and Young are crossing the aisle and stepping up together to restore a bedrock tenet upon which much of our innovation economy rests,” said Jake Reder, Cofounder and CEO, Celdara Medical in Lebanon, New Hampshire.
The bipartisan American Innovation and Jobs Act supports innovative businesses and helps create jobs by:
- Restoring incentives for long-term R&D investment by ensuring that companies can fully deduct R&D expenses each year
- Raising the cap over time for the refundable R&D tax credit for small businesses and startups
- Expanding eligibility for the refundable R&D tax credit so that more startups and new businesses can use it
The bipartisan bill is part of Senator Hassan's continued efforts to support innovative businesses in New Hampshire and across the country. Senator Hassan successfully pushed to include the doubling of the refundable research and development tax credit for small businesses and startups in the Inflation Reduction Act. As Governor of New Hampshire, Senator Hassan doubled the supply of state R&D tax credits and made the credit permanent.
To read the bill text, click here.
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