Congress will not extend 4 popular tax cuts in 2023. Here’s what we know

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To encourage innovation, the federal government allows tax credits for companies to spend on research and development (some tax proponents believe that the money companies spend on research, for example, could be used in new packaging materials for products). I would say it doesn’t help much). to advance society as a whole).

In a major tax bill of 2017, Congress offset the cost of some of the other tax incentives for businesses by later mitigating the benefits of this R&D. Starting in 2022, the law requires companies to deduct R&D spending over a five-year period instead of deducting R&D spending in the year in which it occurs.

The company has tried to prevent the changes from taking effect this year. A group called the Research and Development Coalition, led by giants such as Amazon, Ford, and Microsoft, has repeatedly sent letters to Congress signed by dozens of big-name companies, saying the changes would curb job growth and put the U.S. at a competitive disadvantage. said to put him in a position with China.

Senators from both parties appear to have agreed in a non-binding May ballot, voting 90 to 5 in favor of maintaining full deductions. But the idea didn’t make it into the omnibus bill as it neared Thursday’s final vote.

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