WASHINGTON – U.S. Senator Tommy Tuberville (R-AL) joined U.S. Senator Todd Young (R-IN) to introduce the American Innovation and Jobs Act, legislation that will expand and strengthen research and development by small businesses and startups located in the United States. The bill will help America outcompete and out-innovate global rivals, like China, who are significantly investing in research and development.
“China is on the move and would love nothing more than to make American innovation a thing of the past,” said Senator Tuberville. “Thankfully, President Trump is 100% committed to doing whatever it takes to put American businesses first on the world stage. This bill gives us the upper hand over China by investing in research and development projects based in the United States.”
“The United States is locked in a competition to ensure we maintain our position as the global leader in scientific and technological innovation. Our legislation would incentivize job-creating R&D activity in the United States — particularly among start-ups — to drive our innovation future, strengthen international competitiveness, and protect our national security. Congress must pass this legislation,” said Senator Young.
Sens. Tuberville and Young are joined by Sens. Tammy Baldwin (D-WI), John Barrasso (R-WY), Katie Britt (R-AL), Ted Budd (R-NC), Shelley Moore Capito (R-WV), Chris Coons (D-DE), Steve Daines (R-MT), Deb Fischer (R-NE), Bill Hagerty (R-TN), Maggie Hassan (D-NH), Martin Heinrich (D-NM), Jon Husted (R-OH), Tim Kaine (D-VA), Mark Kelly (D-AZ), John Kennedy (R-LA), Angus King (I-ME), Amy Klobuchar (D-MN), James Lankford (R-OK), Ben Ray Lujan (D-NM), Roger Marshall (R-KS), Catherine Cortez Masto (D-NV), Jerry Moran (R-KS), Markwayne Mullin (R-OK), Patty Murray (D-WA), Jon Ossoff (D-GA), Alex Padilla (D-CA), Gary Peters (D-MI), Pete Ricketts (R-NE), Jacky Rosen (D-NV), Jeanne Shaheen (D-NH), Elissa Slotkin (D-MI), Mark Warner (D-VA), and Roger Wicker (R-MS) in cosponsoring the legislation.
Read full text of the legislation here.
BACKGROUND:
Specifically, the American Innovation and Jobs Act would:
- Restore incentives for long-term R&D investment by ensuring that companies can continue to fully deduct R&D expenses each year by repealing the change made by the Tax Cuts and Jobs Act to section 174 of the tax code.
- Expand support for innovative startups by:
- Immediately doubling the cap on the refundable R&D tax credit from $250,000 to $500,000, and ultimately raising it to $750,000 over ten years.
- Expanding access to the R&D tax credit for startups by lowering certain threshold needed to qualify.
- Expand the number of startups eligible to use the refundable R&D credit by:
- Increasing the eligibility threshold from $5 million to $15 million in gross receipts.
- Increasing the period during which startups can claim the credit from 5 years to 8 years after beginning to generate at least $25,000 in revenue.
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.
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