It’s time for the Biden Administration to work with Republicans to promote American innovation and ensure our businesses compete and win in the global economy, Republican Leader on the Ways and Means Health Subcommittee Rep. Vern Buchanan (R-FL) writes in an op-ed for The Hill.
Republicans promoted key incentives for research and development in the Tax Cuts and Jobs Act. Democrats’ inaction threatens to hurt businesses and gives our competitors a head start:
- “It’s time for the Biden administration to work with Republicans to promote innovation and advance policies to help our businesses compete on the international stage. One critical step is to promote incentives for research and development (R&D).”
- “Until last year, thanks to the Republican Tax Cuts and Jobs Act, U.S. tax law allowed companies to fully write off (expense) qualified R&D costs in the year incurred. This represented a key incentive to locate R&D in the U.S. But beginning in 2022, tax law will require that companies deduct their U.S. R&D costs across 5 years.”
Ways and Means Republicans have introduced solutions:
- “My colleague on the House Ways and Means Committee, Ron Estes from Kansas, has introduced legislation which would allow companies to continue to write off their R&D expenses. Congress should enact this commonsense reform immediately.
- “Doubling the R&D credit would provide a huge boost off the starting block. Another Ways and Means member, Jackie Walorski from Indiana, recently introduced a bill that would do just that. Enactment of this bill would represent a major step toward America catching up to the competition.”
- “Promoting startup companies is another way to compete in the innovation race. Helping entrepreneurs take their unique product or service idea from concept to reality is what the American dream is all about. That’s why I introduced the American Innovation Act, which would quadruple the amount of start-up costs small business owners can deduct from their federal income taxes, raising the limit from $5,000 to $20,000.”
- “Finally, let’s incentivize companies to move the results of R&D—intellectual property—back to the United States. Universities, manufacturers, other American businesses, life sciences companies and hospitals could all benefit by having researchers in closer physical proximity. Here, too, my colleague on the Ways and Means Committee, Darin LaHood from Illinois, introduced legislation to make it easier to bring intellectual property and associated R&D activities back to the U.S. This would greatly strengthen the innovation ecosystem and help the U.S. win back its leadership role.”
CLICK HERE to read the full op-ed.