MIL-OSI USA: Senator Hassan Highlights Bipartisan Push to Restore R&D Deduction at Senate Hearing

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US Senate News:

Source: United States Senator for New Hampshire Maggie Hassan

WASHINGTON – U.S. Senator Maggie Hassan (D-NH) highlighted the importance of the Senate passing the bipartisan tax deal, which the House of Representatives passed on a wide bipartisan basis in January, at a Senate Finance Committee hearing today. Senator Hassan has led efforts to restore the full research & development (R&D) tax deduction, which is included in the package.

To watch Senator Hassan’s hearing questions, click here.

First, Senator Hassan highlighted the importance of the bipartisan tax package that the House passed in January. “This bipartisan package would restore full and immediate deductions for R&D investments – an effort I’ve long worked on with Senator Young – among other major tax priorities for our manufacturers and our small businesses,” said Senator Hassan. “In addition to supporting our domestic manufacturing sector, the bipartisan tax package would also cut taxes for hard-working families through the Child Tax Credit. The package is a bipartisan win-win, and the Senate needs to pass it as soon as possible – before we reach the end of the tax filing season in April.”

Senator Hassan asked Courtney Silver, a small business owner, “how the bipartisan tax package would help small manufacturers invest in their communities and create jobs.”

Ms. Silver mentioned a company that produces the software that she uses to run her business. The expiration of the R&D tax credit meant that the company had less flexibility in its budget to grow and innovate, thereby also affecting the product.

Next, Senator Hassan said, “Other countries are starting to outpace the United States in R&D.” Senator Hassan asked Sharon Janis, Vice President of Global Tax at onsemi, how the bipartisan tax package would help American manufacturers outcompete China.

Ms. Janis explained that Chinese companies can deduct $200 from their taxes for every $100 spent on innovation. Ms. Janis said that supporting R&D tax deductions will make the United States more competitive.

Lastly, Senator Hassan discussed how the bipartisan tax package would benefit businesses and hard-working families with Anna Fendly, Director of Regulatory & State Policy for United Steelworkers. Ms. Fendly highlighted the importance of the Child Tax Credit for helping working-class families and keeping children out of poverty.

Senator Hassan has long led efforts to restore the full R&D tax deduction, and helped secure the deal announced in January – which restores the R&D tax deduction, supports families with a bipartisan, tailored child tax credit expansion, helps communities impacted by disasters, strengthens the low-income housing tax credit, and eliminates waste and fraud. The package passed in the House in January, and a summary of the deal is available here. The R&D measure comes from Senator Hassan’s bipartisan legislation that she first introduced in 2020 and most recently introduced in March of 2023. In May 2022, Senator Hassan’s bipartisan amendment to restore the full R&D deduction passed on an overwhelmingly bipartisan vote of 90-5.

MIL OSI USA News