Washington D.C. – U.S. Senator Katie Britt (R-Ala.) has joined a bipartisan group of lawmakers in reintroducing the American Innovation and Jobs Act, a legislative proposal aimed at enhancing research and development (R&D) incentives for small businesses and startups across the country.
Senators Todd Young (R-Ind.) and Maggie Hassan (D-N.H.) are leading the initiative, with several other senators also signing on in support. The bill seeks to make permanent and expand existing R&D tax provisions that are currently phasing out under the 2017 Tax Cuts and Jobs Act. The goal is to strengthen the nation’s global competitiveness, particularly in the face of increased R&D investments by countries like China.
According to proponents of the legislation, the bill would allow companies to continue fully deducting R&D expenses each year. It would also apply retroactively to cover tax years during which the current full-expensing provisions have begun to phase out. This change is aimed at reducing financial barriers for innovative companies investing in new technologies.
Senator Britt emphasized the national interest in maintaining American leadership in innovation, stating that the legislation supports both entrepreneurs and the broader economic landscape. “My support of the American Innovation and Jobs Act emphasizes my continued commitment to putting hardworking Americans first,” Britt said. “It is absolutely imperative we remain global leaders in innovation, not only to outcompete the likes of China, but also to protect our national interests and support great American entrepreneurs.”
The legislation also proposes increased benefits for startups. It would raise the cap on the refundable R&D tax credit to $750,000 over ten years and adjust qualification criteria by increasing the gross receipts eligibility threshold from $5 million to $15 million. Additionally, the time frame during which startups can claim the credit would be extended to up to eight years after reaching $25,000 in revenue.
Senator Young underscored the importance of the bill in keeping the United States at the forefront of technological advancement. “Our legislation would incentivize job-creating R&D activity in the United States – particularly among start-ups – to drive our innovation future, strengthen international competitiveness, and protect our national security,” he said.
Senator Hassan noted the economic challenges small businesses face and described the legislation as a strategic move to lower tax burdens while reinforcing the country’s technological edge. “This bipartisan legislation cuts taxes for small businesses that invest in innovation, which will also help the United States continue to outcompete our adversaries like China,” she said.
The bill builds on previous efforts, including a similar version co-sponsored by Senator Britt in 2023. Supporters of the American Innovation and Jobs Act argue that its passage is essential to ensuring long-term economic growth, job creation, and national security through sustained domestic innovation.
