This bill restores tax deductions for research and experimental expenditures by amending the Internal Revenue Code. The legislation allows businesses to immediately deduct research and development costs as regular business expenses, or alternatively, to spread those costs over a minimum 60-month period if they prefer. The bill affects all companies and individuals engaged in research and development activities across industries, enabling them to reduce their taxable income based on qualifying R&D spending. The legislation has a retroactive effective date to taxable years beginning after December 31, 2021, meaning it would allow businesses to claim deductions for eligible R&D expenses dating back several years. The bill is supported by a bipartisan group of House members and is intended to encourage innovation and competitiveness by reducing the tax burden on businesses that invest in research and development.
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