WASHINGTON – Today, the U.S. Senate is voting on priorities for the upcoming U.S. competition and innovation package. On an overwhelmingly bipartisan vote of 90 to 5, the Senate passed U.S. Senators Maggie Hassan (D-NH) and Todd Young (R-IN)’s bipartisan motion to promote American research and development. The motion supports expanding the research and development tax credit for small businesses and preserving the ability of innovative U.S. companies to fully deduct R&D investments.
In remarks on the Senate floor, Senator Hassan said, “The research and development tax credit gives critical support to small businesses and start-ups that power our economy. By strengthening the R&D tax credit for start-ups and preserving other tax incentives for research here in America, we can outcompete countries like China.”
Senator Young also spoke on the Senate floor, saying, “We cannot compete with China without robust domestic R&D. A company investing $100 in R&D in China this year would get a $200 deduction. In America? That company investing $100 would only get to deduct $10 this year. We must not lose out on innovation and production to China.”
Watch Senator Hassan and Young’s floor remarks here.
Today’s motion follows Senators Hassan and Young’s ongoing efforts to support research and development. They previously introduced the bipartisan American Innovation and Jobs Act to double the refundable R&D tax credit and expand it to more start-ups and small businesses. As Governor of New Hampshire, Senator Hassan doubled the supply of state R&D tax credits and made the credit permanent.