Referred to the House Committee on Ways and Means.
This bill amends Internal Revenue Code section 174 to restore the ability of taxpayers to treat research and experimental expenditures as deductible current expenses. It preserves an election to amortize certain capitalized R&E costs over not less than 60 months, excludes land and depreciable property, and updates related rules in sections 41 and 280C governing the R&D tax credit interaction.
Fiscal cost versus near-term investment stimulus
Relative to its intended legislative type, this bill is a well-specified substantive tax-policy change that provides clear statutory language and appropriate conforming amendments to restore the deduction for research and experimental expenditures, but it omits fiscal acknowledgement, transitional detail for previously capitalized amounts, and explicit measurement or reporting provisions.
This bill amends Internal Revenue Code section 174 to restore the ability of taxpayers to treat research and experimental expenditures as deductible current expenses.
It preserves an election to amortize certain capitalized R&E costs over not less than 60 months, excludes land and depreciable property, and updates related rules in sections 41 and 280C governing the R&D tax credit interaction.
The amendments apply to taxable years beginning after December 31, 2021.
Narrow, administrable change with possible bipartisan appeal, but significant unoffset revenue loss and no compromise features lower enactment odds.
Relative to its intended legislative type, this bill is a well-specified substantive tax-policy change that provides clear statutory language and appropriate conforming amendments to restore the deduction for research and experimental expenditures, but it omits fiscal acknowledgement, transitional detail for previously capitalized amounts, and explicit measurement or reporting provisions.
Fiscal cost versus near-term investment stimulus
These are examples from the analysis, not a ranked list of the most-affected groups.
Fiscal cost versus near-term investment stimulus
Generally supportive because the bill reduces upfront tax cost of R&D, aiding innovators and startups.
Concerned about revenue loss and that large corporations may capture disproportionate benefit without protections or offsets.
Cautious support conditional on fiscal and implementation clarity.
Sees restoration of immediate deduction as fixing an economic disincentive, but wants CBO scoring and clear IRS guidance to limit unintended consequences.
Supportive as pro-business, pro-growth tax relief that incentivizes private innovation and competitiveness.
Concerned about fiscal cost; would prefer offsets or broader pro-growth tax reform to accompany the change.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Narrow, administrable change with possible bipartisan appeal, but significant unoffset revenue loss and no compromise features lower enactment odds.
The bill has not accumulated any surfaced votes yet.
Fiscal cost versus near-term investment stimulus
Narrow, administrable change with possible bipartisan appeal, but significant unoffset revenue loss and no compromise features lower enactm…
Relative to its intended legislative type, this bill is a well-specified substantive tax-policy change that provides clear statutory language and appropriate conforming amendments to restore the deduction for research a…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.