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NEWS | NSBA, SBTC Tracking R&D Movement on Capitol Hill

On March 17, Senators Hassan (D-NH) and Young (R-Ind.) introduced the American Innovation and Jobs Act aimed at supporting research and development (R&D) investments made by small-business startups and innovators.

The legislation would reverse a 2017 change in the tax code, which became effective in 2022, requiring small businesses to amortize R&D investment deductions over five years, rather than being able to deduct them as an expense in the year that they are made. NSBA strongly supports this legislation and an end to the requirement that R&D expenses be amortized over five years.

The five-year amortization has a particularly negative impact on technology-focused members. Continuing efforts from last year that began more than five years ago, NSBA’s Small Business Technology Council (SBTC) is closely tracking developments related to R&D policy, recently drafting a letter to Congress outlining concerns with the 2017 change and urging reinstatement of an immediate, annual deduction.

To learn more about NSBA and SBTC’s efforts, read SBTC’s letter and sign on to the cause here, and read the text of the pending American Innovation and Jobs Act bill here.


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