Press Releases

WASHINGTON – Today, Reps. Ron Estes (R-Kansas) and John B. Larson (D-Connecticut), along with Reps. Darin LaHood (R-Illinois), Jodey Arrington (R-Texas), Jimmy Panetta (D-California) and Suzan DelBene (D-Washington), reintroduced the American Innovation and Competitiveness Act (AICA).

“As we reopen America, I’m confident the resilience of American workers and entrepreneurs will help our economy recover,” said Rep. Estes. “Permanent, immediate research and development expensing is a critical tax code reform that will encourage innovation and job creation in the United States.”

“Jobs across the nation and Connecticut are driven by innovative research and development. That’s why I was proud to have led the effort to enact a permanent extension of the R&D tax credit in 2015. This has provided American businesses with the certainty needed to invest here at home and support good paying jobs,” said Rep. Larson. “Unfortunately, due to a provision in the Tax Cuts and Jobs Act, businesses will have to amortize R&D expensing over a 5-year period beginning in 2022. I am proud to work on a bipartisan basis with Reps. Panetta, Estes, and LaHood to repeal this provision, which will ensure that the R&D tax credit, along with the ability to deduct R&D expenses, remains an effective engine for American innovation.”

Immediate R&D expensing incentivizes long-term investments in innovation and technological breakthroughs by providing a business an opportunity to deduct research and development activities in the tax year that they occur. The AICA will ensure that the United States continues to be the world leader in innovation by repealing a section of the Tax Cuts and Jobs Act (TCJA) that requires the amortization of R&D expensing over five years beginning in 2022.

This bill was featured as one of the National Taxpayer Union's Bipartisan "No Brainers" in 2020.