Senate Fails to Pass Bill to Reinstate R&D Deduction
Six months ago, we watched a bipartisan tax bill fly through the House with overwhelming support. Now, we’ve seen it fail in the Senate with a vote to end debate coming in at 48-44.
The Tax Relief for American Families and Workers Act (HR.7024), sponsored by House Ways and Means Chair Jason Smith (R-MO) and Senate Finance Chair Ron Wyden (D-OR), tied together three provisions. First, and most important to us, the bill would have revived expired tax provisions to reinstate R&D expense deductions. The other provisions included expanding the low-income housing tax credit, child tax credit, and cutting off the employee-retention tax credit.
On August 1, the Senate floor vote was held and only three Republicans voted in favor: Senators Josh Hawley (R-MO), Markwayne Mullin (R-OK), and Rick Scott (R-FL).
Senator Maggie Hassan (D-NH) has made clear her disappointment in the bill not passing and R&D deduction being passed over. She added “I am going to continue to work across party lines to pass my bipartisan measure to restore the full R&D tax deduction and cut taxes for hard-working families.”
Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.
Who We Are:
Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.
Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.
