Reinstating Section 174 R&D tax provisions is vital to small business.
Reinstating Section 174 R&D tax provisions is vital to small business.
In late March, NSBA joined the Innovation Community in a letter to Sen. Joni Ernst (R-Iowa) urging action on the bipartisan, bicameral Tax Relief for American Families and Workers Act of 2024 (H.R. 7024).
This tax plan was announced in January, overwhelmingly passing out of the House by a vote of 357-70. H.R. 7024 would restore provisions of Section 174 of the tax code relating to first-year expensing of research and development (R&D) investment by American small businesses.
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New rules around R&D expensing went into effect in 2022, under which small-business owners are required to amortize R&D investments over five to 15 years.
This change dramatically increases annual tax liability and disincentivizes innovation-generating investments, and small-business owners are disproportionately hit by this standard.
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Read the full letter to Senator Ernst here, and follow NSBA as we continue following progress and urging the Senate to pass H.R. 7024.
