Protecting R&D
R&D Tax Change Threatens America's Competitiveness
What’s Going On
The challenge: U.S. manufacturers, who drive more innovation than any other sector, face a harmful tax change that will drastically hinder R&D across the industry, threatening thousands of jobs and critical innovation that upholds America’s economy and national security.
What we’re doing about it: The NAM is rallying manufacturers to urge Congress to to support two bipartisan R&D bills that have been introduced in the House and Senate: the American Innovation and R&D Competitiveness Act (H.R. 2673), introduced by Reps. Ron Estes (R-KS) and John Larson (D-CT), and the American Innovation and Jobs Act (S. 866), introduced by Sens. Maggie Hassan (D-NH) and Todd Young (R-IN).
Our Message
In Washington: The NAM is rallying America’s business community in our direct engagement with congressional leadership on the need to repeal the harmful R&D tax change. Read the NAM’s most recent letters to Congress:
The NAM rallied more than 1,300 companies and business associations, calling on Congress to protect businesses’ ability to immediately deduct R&D expenses, finance job-creating investments through a pro-growth interest deductibility standard and fully deduct capital equipment purchases.
The NAM’s most recent letter to congressional leadership, with support from more than 400 companies and business organizations, urges for the repeal of the harmful R&D amortization provision in order to ensure that the tax code continues to support innovation. The NAM letter warns that failing to reverse the amortization requirement “will cost well-paying jobs and reduce future innovation-directed R&D.”
The NAM’s September letter to members of the Senate Finance Committee and the House Ways and Means Committee reinforces that Congress can provide much-needed certainty by the end of 2022 by reversing the change to the tax treatment of R&D, helping to bolster job creation in U.S. manufacturing and secure the industry’s competitiveness on the world stage.
Manufacturing Stories
“Protecting R&D” Series: As part of our advocacy, the NAM is highlighting member stories that reinforce the importance of reversing the harmful R&D tax change. Can we share your story? Please contact NAM Senior Director of Tax Policy Alex Monié.
Click here to view all NAM tax stories. The latest:
- NAM.ORG: Manufacturers to Congress: Restore Pro-Growth Tax Policies Now
- NAM.ORG: R&D Tax Credit Filing Changes Would Hurt Small Manufacturers
- NAM.ORG: NAM Study: U.S. Pharmaceutical Manufacturing Strength Requires Commitment to R&D, Innovative Regulatory Environment
- NAM.ORG: NAM Leads Business Community in Urging Restoration of Pro-Growth Tax Policies
- NAM.ORG: NAM, Rep. Stauber Talk R&D, Workforce
- NAM.ORG: NAM to Congress: Advance R&D Tax Fix Now
- NAM.ORG: Tax Change Throws a Wrench in Westminster Tool’s Operations
- NAM.ORG: How a Tax Change Could Set Back Cancer Treatment
- NAM.ORG: How a Tax Change Will Strangle a Small Manufacturer’s R&D (Marlin Steel)
- NAM.ORG: Why R&D Matters to International Paper
- NAM.ORG: Why Manufacturers Need R&D Tax Certainty (O-I Glass, Inc)
- NAM.ORG: “We’re Gonna Get Hit Hard”: How an R&D Tax Policy Change Hurts Manufacturers (Miltec UV)
- NAM.ORG: Corning Confronts R&D Hurdles
- The Hill: How Congress can reverse three limits on manufacturing’s growth
