"The ability to immediately deduct R&D expenses is especially important for small firms...."
FOR IMMEDIATE RELEASE June 12, 2023
NSBA Applauds Inclusion of R&D Deduction in Ways & Means Bill
WASHINGTON, D.C. – The House Ways and Means Committee has introduced the American Families and Jobs Act which includes language that would help small-business owners invest and grow their businesses. The bill would address one major issue facing many high-tech, innovative firms. Below is a statement from NSBA President and CEO Todd McCracken.
“I want to thank Chairman Jason Smith (R-Mo.) for his support of including key small-business provisions in this legislation, the most pressing of which would allow small businesses to immediately deduct the full cost of R&D outlays. Unfortunately, many of these firms found out this year that, due to arbitrary sunset dates, they had to spread the deduction over five years.
The ability to immediately deduct R&D expenses is especially important for small firms, many of which are early-stage high-growth companies. The move to five-year amortization limits their ability to attract investment and I applaud lawmakers for making this a priority.
The legislation also would make several other important fixes to the tax code: increasing the reporting threshold for subcontract labor; expanding tax incentives to investors who invest in s-corps; and full expensing for the cost of equipment, machinery, and vehicles, staving-off a planned reduction to just 80 percent.
I look forward to working with the full committee to ensure small-business concerns are a priority—both when it comes to easing the financial tax burden as well as easing complexity.”
Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.
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