Bill · H.R. 1990· House(119-HR-1990)

American Innovation and R&D Competitiveness Act of 2025

Age: 70 years

Kansas

Introduced: 3/10/2025
Last activity: 3/10/2025 — Referred to the House Committee on Ways and Means.
Sponsored by: Ron Estes
Cosponsors: - 39 - 41

Taxation

Introduced
In Committee

What this bill would do

This bill, known as the "American Innovation and R&D Competitiveness Act of 2025," aims to amend the Internal Revenue Code of 1986. Its primary purpose is to restore the deduction for research and experimental expenditures. The legislation allows taxpayers to treat these costs as expenses rather than capital accounts under certain conditions. It also provides options for the amortization of specific research expenses over a period of at least 60 months. These changes are intended to apply to taxable years beginning after December 31, 2021.

Yes· 3 of 12

Would business owners be better off under this?+5
The bill directly benefits business owners by providing significant tax relief on research expenditures.
Is this likely to grow the economy?+4
Promoting research and development is a key driver for long-term economic productivity and growth.
Does this cut taxes for small businesses?+3
The restoration of R&D deductions provides tax relief for small businesses engaged in innovation.

The opposite

Does this raise the taxes companies pay?-3
By restoring deductions rather than increasing them, it effectively lowers the tax burden for corporations engaged in R&D compared to current capitalization requirements.
Does this reduce what the federal government owes?-2
Restoring these deductions may reduce federal tax revenue in the short term.
Does this reduce how much oil, gas and coal is produced?-1
The bill specifically excludes mineral and oil/gas exploration from these deductions, which may favor traditional energy over new R&D.