WASHINGTON – Today Reps. Ron Estes (R-Kansas) and John Larson (D-Connecticut) announced that H.R.2673 – the American Innovation and R&D Competitiveness Act – has reached 150 cosponsors. In addition to the Republican and Democrat leads on the bill, the cosponsorship is evenly split among the two parties. This milestone comes right after the IRS issued what ABGi called "crippling guidance regarding a change in the tax treatment of research and experimentation expenses" just a few weeks ago. Additionally, organizations like the Aerospace Industries Association and the National Association of Manufacturers have recently renewed their focus on this expired tax provision as it will greatly impact businesses heading into the Oct. 15 filing extension and quarterly tax deadlines.
"The bipartisan R&D bill is common sense legislation that Congress should pass immediately," said Rep. Estes. "Innovators and job creators across the country are depending on action before the Oct. 15 deadline. Our country has already ceded ground to foreign nations that are offering extraordinary deductions to lure R&D into their borders and, in turn, benefit from the jobs that will no doubt follow the research and development dollars. With 150 cosponsors equally divided between Republicans and Democrats, this is a clear win for the American people."
"I am proud this legislation has reached a milestone of 150 cosponsors, and it goes to show just how important this deduction is. Research and development play an integral role in creating good-paying jobs across the country and in my home state of Connecticut, and we must ensure this bipartisan initiative makes it across the finish line," said Rep. Larson.
Reintroduced on Tax Day of this year, the bill permanently allows for immediate research and development expensing looking back to 2022 when the provision expired and has received broad bipartisan support.
"On behalf of more than 320 American aerospace and defense companies, we are grateful for the overwhelmingly bipartisan support of the American Innovation and R&D Competitiveness Act, which will protect businesses from harmful taxation on innovation and strengthen the defense industrial base," said AIA President and CEO Eric Fanning. "We congratulate Representatives Estes and Larson on reaching 150 co-sponsors of this important legislation and thank them for their continued advocacy for American leadership in aviation and aerospace. As we explore new and advanced technologies to keep American families and our allies and partners safe, Congress now has the clear opportunity to pass this legislation and restore the American spirit of innovation."
"Manufacturers drive more innovation than any other sector. The NAM thanks Reps. Estes and Larson for their continued bipartisan leadership to restore immediate R&D expensing. While there is growing bipartisan momentum to ensure the tax code supports R&D, Congress must act swiftly in order to protect family-supporting American manufacturing jobs, innovation and competitiveness," said NAM Senior Director for Tax Policy David Eiselsberg.
Reps. Estes and Larson reintroduced H.R. 2673 – the American Innovation and R&D Competitiveness Act – on April 18, 2023. They were joined by Reps. Darin LaHood (R-Illinois), Suzan DelBene (D-Washington), Jodey Arrington (R-Texas), Jimmy Panetta (D-California) and 60 additional original cosponsors. Rep. Estes delivered remarks on the House floor in April, and numerous organizations offered their support following the bill's introduction. In June, Rep. Estes testified on the legislation in a Small Business Committee subcommittee, discussed the bill during a Ways and Means markup for the committee's Build It in America Act – an economic package that included a version of Rep. Estes' bill and was reported out of committee, and penned an op-ed for The Hill highlighting the then more than 100 cosponsors and touting the benefits of the legislation.