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Tax Relief for Innovation: Immediate R&D Deductions and Higher Small Business Credits.

This law restores the ability for businesses to immediately deduct research and development (R&D) costs, boosting cash flow and encouraging innovation. It also significantly increases the refundable tax credit cap for new and small businesses, making it easier for them to invest in new technologies. These changes aim to accelerate economic growth and national competitiveness.
Key points
Businesses can immediately deduct R&D expenses from their taxes, instead of spreading them out over several years. This change applies to taxable years beginning after December 31, 2021.
The maximum refundable research tax credit for small businesses increases from $250,000 up to $750,000 (phased in until 2035).
More small businesses qualify for these benefits, as the annual gross receipts threshold is raised from $5 million to $15 million.
article Official text account_balance Process page
Introduced
Citizen Poll
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Additional Information
Print number: 119_S_1639
Sponsor: Sen. Young, Todd [R-IN]
Process start date: 2025-05-07
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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 119_S_1639.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-05-07.

What are the main provisions?

Key points include:

  • Businesses can immediately deduct R&D expenses from their taxes, instead of spreading them out over several years. This change applies to taxable years beginning after December 31, 2021.
  • The maximum refundable research tax credit for small businesses increases from $250,000 up to $750,000 (phased in until 2035).
  • More small businesses qualify for these benefits, as the annual gross receipts threshold is raised from $5 million to $15 million.
What is the specific legal status?

The current status is Introduced.

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. Young, Todd [R-IN].

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 2025-12-31.

CATEGORIES

Taxes Economy