WASHINGTON – Sen. John Kennedy (R-La.) joined Sens. Todd Young (R-Ind.) and Maggie Hassan (D-N.H.) in reintroducing the American Innovation and Jobs Act, which would strengthen American research and development (R&D).

Companies and startups investing in R&D have long been able to either claim a tax credit or deduct their investments, which helps them to invest in developing innovative products. In 2017, Congress passed the Tax Cuts and Jobs Act, which included a provision allowing full expensing of R&D that expired in 2022.

The bill would extend and make permanent that expired provision and allow businesses to retroactively take advantage of the deduction for the tax years during which full expensing had expired.

“Americans deserve a tax code that looks like it was designed on purpose, and that includes extending tax policies that encourage innovation. I’m proud to help introduce the American Innovation and Jobs Act to help our small businesses and startups compete against China,” said Kennedy. 

“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 Young.

“As many small businesses struggle with rising costs, this bipartisan legislation cuts taxes for small businesses that invest in innovation, which will also help the United States continue to outcompete our adversaries like China,” said Hassan.

Sens. James Lankford (R-Okla.), Jeanne Shaheen (D-N.H.), Steve Daines (R-Mont.), Mark Warner (D-Va.), John Barrasso (R-Wyo.), Jacky Rosen (D-Nev.), Thom Tillis (R-N.C.), Gary Peters (D-Mich.), Roger Marshall (R-Kansas), Alex Padilla (D-Calif.), Tommy Tuberville (R-Ala.), Patty Murray (D-Wash.), Amy Klobuchar (D-Minn.), Pete Ricketts (R-Neb.), Mark Kelly (D-Ariz.), Katie Britt (R-Ala.), Tim Kaine (D-Va.), Shelley Moore Capito (R-W.Va.), Catherine Cortez Masto (D-Nev.), Deb Fischer (R-Neb.), Tammy Baldwin (D-Wis.), Jerry Moran (R-Kansas), Ben Ray Lujan (D-N.M.), Bill Hagerty (R-Tenn.), Chris Coons (D-Del.), Markwayne Mullin (R-Okla.), Elissa Slotkin (D-Mich.), Roger Wicker (R-Miss.), Angus King (I-Maine), Ted Budd (R-N.C.), Jon Ossoff (D-Ga.), Jon Husted (R-Ohio), and Martin Heinrich (D-N.M.) also cosponsored the bill.

Full text of the American Innovation and Jobs Act can be found here.