Published:
Senators Hassan, Young, Cortez Masto, Portman, and Sasse Introduce Bipartisan Bill to Support Innovative Businesses and Startups' Research and Development
WASHINGTON -- U.S. Senators Maggie
Hassan (D-NH), Todd Young (R-IN), Catherine Cortez Masto (D-NV), Rob Portman
(R-OH), and Ben Sasse (R-NE), all members of the Senate Finance Committee,
introduced the bipartisan American Innovation and Jobs Act to
support research and development (R&D) investments by
innovative small businesses and startups. At 10 AM today, the
Senate Finance Committee will
hold a hearing on supporting domestic manufacturing through the tax code.
Currently, companies and startups
investing in R&D can either claim a tax credit or fully deduct their
investments, which helps them to invest in developing new, innovative
products that lead to additional jobs and a stronger economy. The
bipartisan American Innovation and Jobs Act builds on this by
doubling the refundable R&D tax credit and extending it to more startups
and small businesses. In addition, the bill preemptively reverses a change
in the 2017 tax law -- that is set to go into effect next year -- that would
limit companies from fully deducting R&D investments each year.
“Providing support to startups and
small businesses will help us jumpstart the economy and create jobs here in the
U.S.,” Senator Hassan said. “Our bipartisan legislation would strengthen
and expand R&D tax incentives, which will help drive innovation, promote
economic recovery, and help U.S. businesses outcompete foreign manufacturers. I
will keep working with my colleagues on both sides of the aisle to gain support
for this important measure.”
“Now, more than ever, we must find
bipartisan solutions to stimulate our economy, get Americans back to work, and
ensure we maintain our position on the world stage as the leader in scientific
and technological innovation. The American Innovation and Jobs Act would
incentivize job-creating R&D activity in the United States, particularly
among start-ups, to help our country emerge from the disastrous economic impact
of the pandemic. I hope to work with my Senate colleagues on both sides of the
aisle to pass this important legislation this year,” said Senator Young.
“Nevada’s startups and small
businesses are fueling cutting-edge advancements that will help us beat this
pandemic and bring back our economy,” said Senator Cortez Masto. “It’s
vital that we encourage this innovation by making R&D tax credits more
accessible, so that startups and small businesses can focus on paying their
employees, creating jobs, and boosting the economy.”
“Research and development
spurs innovation and drives the U.S. economy – reversing
the change to allow full expensing instead of amortizing R&D
expenses over five years will help ensure the U.S.
remains the world leader in technological
advancement," said Senator Portman "This legislation
also expands the R&D credit for small businesses
and start-ups, which are often the drivers of new
breakthroughs and ideas. This credit comes at a crucial time while our
economy is rebuilding from COVID-19."
“This just makes
sense. We should do what we can to spur on scientific research and
development,” said Senator Sasse. “This common-sense bipartisan
legislation encourages reinvestment — growing opportunity for the American
people.”
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
continue to fully deduct R&D expenses each year
·
Immediately
doubling and then further 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 bipartisan efforts to support innovative businesses in New
Hampshire and across the country. As Governor of New Hampshire, Senator
Hassan doubled the supply of state R&D tax credits and made the credit
permanent. Earlier this year, Senator Hassan and a bipartisan group of her
colleagues, including Senator Portman, discussed strengthening
the U.S. supply chain with President Joe Biden and Vice President Kamala
Harris. Senator Hassan has also hosts an annual Innovate NH
Entrepreneurship Forum, which features interactive workshops to help
entrepreneurs from across the state get their ideas off the ground.
The American Innovation and Jobs Act is
endorsed by the National Association of Manufacturers and the R&D
Coalition. You can read a one-pager on the bill here,
and the full bill text is here.
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