Weekly Policy Blog: CBSA Urges Congress to Repeal R&D Amortization and Restore Immediate R&D Expensing
By: Colorado BioScience Association Date: 05/15/2023
Colorado BioScience Association (CBSA) continues our work to advocate for U.S. tax policies that enable investment in critical life-saving innovation and to generate strengthened support for restoration of the immediate expensing of research and development expenditures. The bipartisan American Innovation and R&D Competitiveness Act (H.R. 2673), introduced by Representatives Ron Estes (R-KN) and John Larson (D-CT) on April 18, mirrors Senate Bill (S. 866), the American Innovation and Jobs Act of 2023, sponsored by Senators Maggie Hassan (D-NH) and Todd Young (R-IN).
Strengthening incentives for innovation is a longstanding policy priority for CBSA.
Last Congress, CBSA partnered with Biotechnology Innovation Organization (BIO) and sent a letter to Congress emphasizing the negative impacts of R&D amortization and urging Congress to take immediate legislative action to repeal the harmful R&D amortization provisions that went into effect in January 2022.
Following the introduction of S. 866 earlier this year, CBSA partnered with the Council of State BioScience Associations and joined 46 other state affiliates in signing on to a letter urging Congress to pass S. 866 to restore the expensing of R&D expenditures to ensure the development of future treatments and cures. CBSA also encouraged members of the Colorado Congressional delegation to sign on as co-sponsors of this legislation.
Most recently, following the introduction of H.R. 2673, CBSA urged members of the Colorado Congressional delegation to cosponsor this bill and urge other members of Congress to take action to protect our local innovation economy in Colorado.
Both pieces of legislation are garnering growing support with 87 co-sponsors of H.R. 2673 in the House, and 29 co-sponsors of S. 866 in the Senate. Congress taking action to advance these federal bills is vital to the responsible development and delivery of future novel treatments, and the future of Colorado’s life sciences ecosystem, particularly our R&D-intensive small companies that take enormous risks to develop the next generation of breakthrough health technologies.
CBSA applauds CO U.S. Representative Joe Neguse and CO U.S. Representative Brittney Pettersen for co-sponsoring H.R. 2673 and urges additional members of the Colorado delegation to sign on as co-sponsors of H.R. 2673, the American Innovation and R&D Competitiveness Act, and S. 866 the American Innovation and Jobs Act of 2023.