Enchantment State News

WASHINGTON - This week, U.S. Senator Martin Heinrich (D-N.M.), Chairman of the U.S. Congress Joint Economic Committee, cosponsored the bipartisan American Innovation and Jobs Act, which is being led by U.S. Senators Maggie Hassan (D-N.H.) and Todd Young (R-Ind.).

Currently, companies and startups investing in R&D can claim tax incentives that help them to invest in developing new, innovative products that lead to additional jobs and a stronger economy. The American Innovation and Jobs Act supports innovative startup businesses by expanding the refundable Research and Development (R&D) tax credit and extending it to more startups and small businesses. In addition, the bill reverses a change in the 2017 Tax Cuts and Jobs Act that limits companies from fully deducting R&D investments each year.

“Research and development fuels American innovation and competitiveness,” said Heinrich. “These tax incentives will encourage more American small businesses and startups to invest in the products and technologies that help us create new jobs, spur economic growth, and maintain our nation’s competitive edge.”

The bipartisan American Innovation and Jobs Act supports innovative businesses and helps create jobs by:

• Restoring incentives for long-term R&D investment by ensuring that companies can fully deduct R&D expenses each year.
• Raising the cap over time for the refundable R&D tax credit for small businesses and startups.
• Expanding eligibility for the refundable R&D tax credit so that more startups and new businesses can use it.

The bipartisan bill builds on the Inflation Reduction Act, which doubled the refundable research and development tax credit for small businesses and startups.

To read the bill text, click here.

Original source can be found here.