YouTube video
The issue

Congress’s R&D tax change hurts innovators like America’s engineering companies that work every day to make communities better — from cleaner air and water to safer buildings and bridges.

The tax change went into effect in 2022 and forces firms to amortize R&D costs over five years, instead of deducting expenses the year they occurred.

The misguided change creates a disincentive for investment in innovation and places the U.S. at a competitive disadvantage to other countries that provide greater incentives for R&D.

THE SOLUTION

ACEC urges America's Representatives and Senators to cosponsor and support the American Innovation and R&D Competitiveness Act (H.R. 2673) and the American Innovation and Jobs Act (S.866) to fix this mistake in the tax code.

Now is the time to fix the tax so that innovators can get back to building the solutions America needs.

Business audit stock financial finance management on analysis data strategy with graph accounting marketing or report chart economy investment research profit concept. Generative AI

R&D Amortization is an Industry-Wide Concern

R&D amortization isn't just a problem for big companies. In fact, 58% of engineering firms surveyed by the ACEC Research Institute indicated they conduct R&D spending. Among those impacted, the average will be a loss of nearly $1.5 million (median loss of $400,000). Source: ACEC Research Institute 2023 Q4 Engineering Business Sentiment Survey.

%
Of Surveyed Engineering Firms Conduct R&D
%
Of Firms Conducting Expect R&D Amortization to Negatively Affect Them
%
Of Firms Conducting R&D Spent $1 Million or More on R&D

Learn More

Read a one-page issue summary explaining how 5-year amortization of research and development expenses will harm America's engineering businesses.

Hand of businessman holding a pen pointing to R and D icon for Research and Development on laptop screen. Manage costs more efficiently. R and D innovation concept.
Action Alert

Take Action

Urge your Representatives and Senators to repeal R&D amortization to protect innovation in America's engineering industry.  Send a letter if you are an ACEC member.  If not, call your member of Congress at (202) 224-3121.

Real People. Real Stories.

Hear directly from America's engineering firm leaders about how the 5-year amortization of R&D expenses affects their ability to hire new employees, grow, or in some cases stay in business.

YouTube video
YouTube video
YouTube video
YouTube video
YouTube video
YouTube video
YouTube video
YouTube video

In the News

Online news in mobile phone. Close up of smartphone screen. Man reading articles in application. Hand holding smart device. Mockup website. Newspaper and portal on internet.

Politico Influence

Read about the launch of the Engineer Innovation campaign in Politico Influence.

 

Hand of businessman holding a pen pointing to R and D icon for Research and Development on laptop screen. Manage costs more efficiently. R and D innovation concept.

Our R&D Advocacy Goes National

Read Linda Bauer Darr's Tuesday Letter on the R&D campaign.

Screenshot 2023-10-31 at 5.11.15 PM

Associated Industries of Missouri Editorial

Protect American Innovation - Fix the R&D Tax Issue

More News

Katharine Mottley Portrait

Katharine Mottley

View
Steve Hall Portrait

Steve Hall

View
Portrait of Jeff Urbanchuk

Jeff Urbanchuk

View