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BIO Sends Letter to Congressional Leaders on Need to Repeal Harmful R&D Amortization Provision

June 15, 2022

The Biotechnology Innovation Organization (BIO), BIO members and State affiliates urge immediate legislative action to repeal the harmful R&D amortization provision that went into effect earlier this year. The 2017 Tax Cuts and Jobs Act (TCJA) changed the longstanding deduction for R&D expenditures to a mandatory five-year amortization for domestic R&D and fifteen-year amortization for foreign R&D, with the effective date delayed until 2022. As has been noted by companies and industries across the economy, the R&D amortization provision will have a negative impact on American innovation and high-paying R&D jobs. For the biotechnology industry specifically, it will divert much-needed funds away from small R&D-intensive companies, potentially doing long-term damage to the development of the future treatments and ultimately limiting the pipeline of treatments and products that patients and consumers are relying on our industry to develop; technologies that help heal, fuel, and feed the world.

For this reason, legislation should be enacted to restore the expensing of R&D expenditures retroactive to January 1, 2022.

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BIO submits comments on the MDH’s proposed regulations regarding Drugs of Substantial Public Interest: Draft Methodology for Public Comment as required in statute by the Prescription Drug Price Transparency Act.    
The Biotechnology Innovation Organization appreciates the opportunity to comment on the Center for Medicare and Medicaid Services’ Information Collection Request on the Part C and Part D Medicare Prescription Payment Plan Model Documents.
In response to the 340B Request for Information issued by the Senate 340B Bipartisan Working Group, BIO submits detailed comments.