The U.S. Senate on Wednesday voted on priorities for the upcoming conference committee on the U.S. Innovation and Competition Act, a bill led by Senator Todd Young (R-Ind.).
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In an overwhelmingly bipartisan vote of 90 to 5, the Senate passed a bipartisan motion offered by Senators Young and Maggie Hassan (D-N.H.) to promote American research and development (R&D).
The motion supports expanding the research and development tax credit for small businesses and preserving the ability of innovative U.S. companies to fully deduct R&D investments.
In remarks on the Senate floor, Senator Young said, “We cannot compete with China without robust domestic R&D. A company investing $100 in R&D in China this year would get a $200 deduction. In America? That company investing $100 would only get to deduct $10 this year. We must not lose out on innovation and production to China.”
Senator Hassan also spoke on the Senate floor and said, “The research and development tax credit gives critical support to the small businesses and start-ups that power our economy. By strengthening the R&D tax credit for startups and preserving other tax incentives for research here in America, we can outcompete countries like China.”
Click here to watch Senator Young’s floor remarks on YouTube.
Wednesday’s motion follows Senators Young and Hassan’s ongoing efforts to support research and development. The Senators previously introduced the bipartisan American Innovation and Jobs Act to restore incentives for long-term R&D investment by ensuring that companies can continue to fully deduct R&D expenses each year. The bill would also double the refundable R&D tax credit and expand it to more startups and small businesses.