On Tax Day, organizations and innovators are continuing to show support for the American Innovation and R&D Competitiveness Act, legislation introduced by Reps. Ron Estes (R-Kansas) and John Larson (D-Connecticut) that permanently allows for immediate research and development expensing looking back to 2022 when the provision expired. Reps. Estes and Larson were joined by Reps. Rudy Yakym (R-Indiana) and Suzan DelBene (D-Washington) and the bill has an additional 70 cosponsors evenly split between Republicans and Democrats. The statements below are in addition to support expressed by the National Association of Manufacturers and the Association of Equipment Manufacturers when Reps. Estes and Larson introduced the bill in March.
"The Aerospace Industries Association is grateful for the continued bipartisan support of the American Innovation and R&D Competitiveness Act, which will restore immediate research and development expensing — allowing innovation to flourish among America's aerospace and defense companies and ensuring we continue to outpace our adversaries. We thank Congressman Estes and Congressman Larson for championing these efforts and supporting American business by reintroducing this important bill," said Eric Fanning, president and CEO, Aerospace Industries Association.
"Restoring full and immediate R&D expensing is essential to the future of American manufacturing and the competitiveness of the U.S. plastics industry," said Chris Rager, vice president of government affairs, Plastics Industry Association. "Our sector supports over one million jobs and drives innovation in critical areas like healthcare, automotive, and sustainable packaging. This bipartisan measure will help ensure manufacturers can continue investing in next-generation technologies that strengthen our economy, advance sustainability, and keep the United States at the forefront of global innovation."
"The American Innovation and R&D Competitiveness Act is a beacon of hope for U.S. manufacturers as we face unfair global competition," said Eric Axel, executive director, American Medical Manufacturers Association. "By reinstating immediate R&D expensing, this bipartisan legislation empowers domestic makers of critical medical supplies to innovate, compete, and safeguard our public health and national security. It's a crucial step towards ensuring America remains a leader in producing life-saving supplies, fostering economic resilience, and creating high-paying jobs nationwide."
"Our research and development efforts drive advancements in magnetic technologies used across food processing, recycling, and advanced manufacturing. These innovations not only help protect equipment and ensure safety—they also support good-paying, skilled jobs in Kansas. Restoring immediate expensing for R&D, as proposed in Congressman Estes' legislation, would give manufacturers like us the certainty and resources we need to keep hiring, expanding, and staying competitive. We’re grateful for his leadership and strong support of Kansas manufacturers,” said Robert Bunting Jr., president & CEO, Bunting in Newton, Kansas.
You can read the full text of the bill here.
Background
Rep. Estes has been a leader in advocating for American innovation. In the previous Congress, Reps. Estes and John Larson (D-Connecticut) reintroduced H.R. 2673 – the American Innovation and R&D Competitiveness Act – on April 18, 2023. Rep. Estes delivered remarks on the House floor in April of 2023 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.
In April of 2024, Ways and Means Committee Chairman Jason Smith (R-Missouri) and Tax Subcommittee Chairman Mike Kelly (R-Pennsylvania) named Rep. Estes chair of the newly formed U.S. Innovation Tax Team, one of ten working groups comprised of committee members to study key tax provisions from the 2017 Trump tax cuts that are set to expire in 2025. Rep. Estes talked with innovators and manufacturers throughout Kansas in August and September and led a delegation with House Ways and Means Chairman Jason Smith (R-Missouri) and then-Tax Team Vice Chair Michelle Steel (R-California) to Silicon Valley later in September to meet with U.S. innovators and stakeholders about the upcoming TCJA expirations.
