If your business invests heavily in research and development activities, you may face an unexpected surprise this year as you start planning for your 2022 tax filings.  For almost 70 years, businesses have been able to deduct their R&D expenses immediately, incentivizing critical research investments.  Starting this year, however, provisions from the 2017 tax law will require firms to amortize R&D investments over five years rather than deducting in the same year in which the costs are incurred.   Unless reversed or delayed, this change will adversely affect the cash flow for businesses engaged in R&D, significantly impacting future funding for R&D and harming the United States’ global competitiveness. 

Fortunately, the American Families & Jobs Act  was recently introduced by the House Ways & Means Committee, which includes provisions that would reverse the R&D amortization rule for at least the next four years, giving us more time to adopt a permanent correction.   

Please reach out to your legislators NOW to let them know that you SUPPORT the legislative fix.