House Passes Bill to Restore First-Year Expensing of R&D Investments
Impact of TCJA on American Innovation
We have heard numerous stories of desperation — entrepreneurs forced to take out emergency loans, remortgage their homes, plead with investors for additional capital, lay off essential staff, or dramatically scale back business plans. But when Congress passed the Tax Cuts and Jobs Act (TCJA) in 2017, it changed the tax treatment of R&D to partially off-set the revenue impact of tax cuts.
The Tax Relief for American Families and Workers Act
The bill aims to restore aspects of Section 174 of the Internal Revenue Code relating to first-year expensing of R&D investment by American businesses. Senate Majority Leader Chuck Schumer has indicated that the Senate could consider the bill in the near future.
China's Innovation Competition
China's aggressive investment in R&D and advanced technologies poses a significant competitive threat to America's innovation leadership. Chinese initiatives like Made in China 2025 and increased R&D spending underscore their ambition to dominate global innovation.
- America's Response to Innovation Competition
- Legislative Solution to Restore R&D Investment Deductions
- Global Impact of China's Innovation Strategy
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.