WASHINGTON – Tonight the House overwhelmingly passed the Tax Relief for American Families and Workers Act 357 to 70. The bipartisan, bicameral tax package includes R&D expensing provisions advocated for by Rep. Ron Estes (R-Kansas) similar to those in his American Innovation and R&D Competitiveness Act – a bipartisan bill that has amassed 218 cosponsors, making it the 12th most cosponsored piece of legislation in the 118th Congress.
Before the vote, Rep. Estes spoke on the House floor to advocate the bill's passage and to tout the R&D expensing provision.
"High costs of goods and services and burdensome regulations have strained pocketbooks and the economy, and Americans need a break. The Tax Relief for American Families and Workers Act provides the win we need," said
Rep. Estes.
Watch Rep. Estes' remarks
Full Remarks
Thank you, Mr. Speaker. I want to start by thanking Chairman Smith for his tireless work on this tax package we’re about to pass.
American families and small businesses are in desperate need of economic relief. High costs of goods and services and burdensome regulations have strained pocketbooks and the economy, and Americans need a break. The Tax Relief for American Families and Workers Act provides the win we need.
The bill includes a provision that I’ve been advocating for – immediate R&D expensing. Without this, we’ve seen the growth rate of R&D spending slow. And since three-quarters of R&D spending is on wages and salaries, R&D amortization is primarily a jobs issue.
Countless Kansas small businesses express their grave concern about this expired provision, and I’m glad we're taking a positive step to restore immediate R&D expensing.
Background
Reps. Estes and Rep. John Larson (D-Connecticut) 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.
In December, Rep. Estes spoke to Tax Notes about the expired provision and published an op-ed in Newsweek unpacking the positive outcomes – for individual taxpayers and across the economy – made possible by the Tax Cuts and Jobs Act (TCJA) of 2017 and explaining how his bipartisan bill offers a solution to the expired R&D expensing provision that would help restore America’s dominance in R&D and secure American jobs.
On Jan. 11, Rep. Estes led colleagues in a Special Order hour to discuss the importance of R&D immediate expensing and other pro-growth tax policies. During the Ways and Means markup of the Tax Relief for American Families and Workers Act just a few weeks ago, Rep. Estes again urged colleagues to support R&D expensing, saying, "Simply put, Republicans and Democrats agree that this is going to boost our economy and our workforce."
