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.”