Placeholder Banner

BIO: Delay of R&D Tax Burden is Positive Step, Permanent Repeal Still Needed

June 15, 2023
Media Contact
Lynne Headshot

The House Ways & Means Committee has approved a bill that includes language to delay retroactively through 2025 the mandatory capitalization of research and development expenses, which took effect in tax year 2022. The Tax Cuts and Jobs Act of 2017 replaced the ability to deduct R&D expenses immediately from taxes with five-year amortization. The following statement concerning the committee’s action may be attributed to Nick Shipley, chief advocacy officer for BIO.  

“BIO thanks the House Ways & Means Committee for addressing the critical issue of R&D expensing. Restoring immediate expensing of R&D expenditures is critical to prevent an innovation-killing tax burden on biotech companies, including those working to develop the biomedical breakthroughs that patients need. Tax policy should incentivize, not penalize, investments in R&D to meet the world’s challenges, from antimicrobial resistance, pandemic preparedness and rare disease, to food security, climate resiliency and growing the nation’s bioeconomy. 

“The committee’s action to delay the mandatory amortization requirement by four years is a welcome first step to address this issue. BIO urges Congress to continue working to enact full and permanent restoration of this vital incentive for innovation.” 

Discover More
Following the conclusion of the WTO 13th Ministerial Conference in Abu Dhabi, John Murphy -- BIO's Chief Policy Officer -- made the following statement: “We are encouraged that WTO Members did not agree to extend an intellectual property…
New Season of I am BIO Podcast to Showcase  Life-Changing Biotech Breakthroughs Launching February 27, spring 2024 season explores a new CRISPR therapy, advances in microbiome research, biotech for pets and more  WASHINGTON – (Feb. 23,…
The Creating Hope Reauthorization Act of 2024 was introduced in the House of Representatives this week. BIO CEO and President, Rachel King, made the following statement following the bill's introduction: "BIO strongly supports the House…