Arrington Joins Estes, Larson, LaHood, Panetta, and DelBene in Bipartisan Legislation to Encourage Investment in Innovation
Washington, February 25, 2021
WASHINGTON – Today, Rep. Jodey Arrington (TX-19) joined Rep. Estes (R-KS), Rep. Larson (D-CT), Rep. LaHood (R-IL), Rep. Panetta (D-CA), and Rep. DelBene (D-WA) in introducing the American Innovation and Competitiveness Act (AICA).
“I am proud to join my colleagues in introducing the bipartisan American Innovation and Competitiveness Act to keep America at the forefront of research and development. Promoting investment in innovation will generate new job growth and pave the way for technological breakthroughs and life-saving cures that will improve the quality of life for Americans,” said Rep. Arrington.
“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, DelBene, Estes, LaHood, and Arrington 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.