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Tax Relief for R&D: Immediate Expensing and Expanded Credits for Startups

This bill aims to amend tax rules regarding research and development (R&D) activities. A key change restores the ability to immediately deduct research and experimental expenditures instead of amortizing them. Additionally, the bill increases the cap on the refundable research tax credit for qualified small businesses and raises the gross receipts thresholds for eligibility.
Key points
Taxpayers may treat research and experimental expenditures as deductible expenses rather than capitalizing and amortizing them. This applies to taxable years beginning after December 31, 2021.
The maximum refundable research tax credit for small businesses will be gradually increased, reaching $750,000 for taxable years beginning after December 31, 2032.
The annual gross receipts threshold for businesses to qualify as eligible small businesses is raised from $5 million to $15 million.
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Additional Information
Print number: 118_S_866
Sponsor: Sen. Hassan, Margaret Wood [D-NH]
Process start date: 2023-03-16
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OFFICIAL LEGAL TITLE

American Innovation and Jobs Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_866.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-03-16.

What are the main provisions?

Key points include:

  • Taxpayers may treat research and experimental expenditures as deductible expenses rather than capitalizing and amortizing them. This applies to taxable years beginning after December 31, 2021.
  • The maximum refundable research tax credit for small businesses will be gradually increased, reaching $750,000 for taxable years beginning after December 31, 2032.
  • The annual gross receipts threshold for businesses to qualify as eligible small businesses is raised from $5 million to $15 million.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Hassan, Margaret Wood [D-NH].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Economy