Senators Hassan, Young Introduce Bipartisan Bill to Support Innovative Businesses and Startups' Research and Development
WASHINGTON -- U.S. Senators Maggie Hassan (D-NH) and Todd Young (R-IN), both members of the Senate Finance Committee, introduced the bipartisan American Innovation and Jobs Act to support research and development (R&D) investments by innovative small businesses and startups.
Companies and startups can either deduct R&D investments or claim them as a tax credit, which helps them to invest in developing new, innovative products that lead to additional job creation and a stronger economy. Senators Hassan and Young's bill reverses a change in the 2017 tax law to ensure that companies can continue to fully deduct R&D investments each year. It also doubles the refundable R&D tax credit and extends it to more small businesses.
"Innovative businesses and startups will help drive our economic recovery from the COVID-19 pandemic," said Senator Hassan. "By expanding and strengthening R&D tax incentives, this bipartisan bill will help support startups, boost economic opportunity, and fuel American innovation. I'm glad to be partnering with Senator Young on this bipartisan effort, and we'll keep pushing to build momentum and get this bill passed into law."
“Startups and other small businesses are the engines of job creation in the U.S. and will be critical to our economic recovery as we emerge from the coronavirus pandemic,” said Senator Young. “The American Innovation and Jobs Act will ensure we are doing our part by making the R&D credit as accessible and useful as possible so employers can focus on growing their business, while helping to create jobs and boost our economy at the same time.”
The bipartisan American Innovation and Jobs Act supports innovative businesses and helps create jobs by:
- Restoring incentives for long-term R&D investment by ensuring that companies can continue to fully deduct R&D expenses each year
- Immediately doubling and then further raising the cap over time for the refundable R&D tax credit for small businesses and startups
- Expanding eligibility for the refundable R&D tax credit so that more startups and new businesses can use it
The bipartisan bill is part of Senator Hassan's continued bipartisan efforts to support innovative businesses in New Hampshire and across the country. As Governor of New Hampshire, Senator Hassan doubled the supply of state R&D tax credits and made the credit permanent. The first bill Senator Hassan introduced in the Senate was the Reigniting Opportunity for Innovators Act, which would help provide student loan relief for entrepreneurs. Senator Hassan has also has hosted an annual Innovate NH Entrepreneurship Forum, which features interactive workshops to help entrepreneurs from across the state get their ideas off the ground.
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