NEC Urges Delegation Address Harmful R&D Tax Code Change
The New England Council recently wrote to the New England Congressional delegation urging them to take action to address a change to the tax code that will negatively impact innovation in the region.
For years, businesses have been allowed to fully deduct the full amount of research & development (R&D) expenses each calendar year. However, pursuant to a provision of the Tax Cuts and Jobs Act of 2017, companies will be required to amortize those expenses over five years, beginning in tax year 2022. As a result of this change, the US is now only one of two developed countries requiring the amortization of R&D expenses.
The Council has heard from members across a variety of industries – including defense, healthcare, life sciences, technology – that this change in the tax code is of significant concern and could negatively impact continued innovation in the region. Therefore, The Council sent a letter to members of the New England Congressional delegation urging them to support a fix to prevent this change from going into effect.
For more information on this issue, or on the Council’s Technology & Innovation Working Group, please contact Mariah Healy.