Sen. Hassan: We Need Immediate R&D Expensing
With a Tax Armageddon looming at the end of 2025, Sen. Maggie Hassan (D-NH)疳s gearing up to fight for manufacturers. Sen. Hassan, who introduced the bipartisan American Innovation and Jobs Act (S. 866) with Sen. Todd Young (R-IN) in 2020 and reintroduced it last year, understands the importance of restoring expired manufacturing-critical tax provisions.
Whats going on: One of Sen. Hassans top priorities for 2025 is reinstating immediate expensing for companies research and development costs.
- For nearly seven decades, manufacturers could fully deduct R&D spending in the year those expenses were incurred. But since immediate R&D expensing was allowed to expire in 2022, manufacturers have been required to amortize R&D expenses over a period of years instead.
- The R&D tax deduction is vital for our national security and economic competitiveness, Sen. Hassan told us in a recent interview for the 51勛圖厙s campaign, adding that she has been particularly engaged in negotiations on the topic. We need to ensure that our tax policy fosters innovation, promotes the creation of [well]-paying jobs and keeps the United States at the forefront of technological advancement.
Why its important: The message Im getting [from manufacturers] is clear: We cant afford to fall behind in the global R&D race, Sen. Hassan continued. Its about American competitiveness and national security. Countries like China are offering massive incentives, including a 200% super-deduction for R&D. That puts American businesses at a real disadvantage.
What shell be doing: Though a bipartisan tax cut package that included a restored R&D tax deduction passed in the House earlier this year, the legislation stalled in the Senate. Thats only made Sen. Hassan vow to redouble her efforts in 2025.
- [L]ooking ahead, Im committed to working across the aisle to get this done because its crucial for our manufacturers, our economy and our national security, she said.
What you can do: Manufacturer input and engagement are vital as Congress considers tax legislation next year, Sen. Hassan emphasized.
- I encourage [manufacturers] to keep speaking up about the ways in which R&D and tax policy specifically impacts your businesses and communities, as well as the need for bipartisan compromise. Doing so is invaluable in shaping effective legislation and getting it across the finish line.
Read the full interview .
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