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.
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.
Learn More
Read a one-page issue summary explaining how 5-year amortization of research and development expenses will harm America's engineering businesses.
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.
Send A Message
Send a pre-populated message to Congress over social media by clicking the text to the right.
ACEC Member Firm on Nevada Newsmakers
Chris Anderson, CEO of DJ&A Engineering, headquartered in Montana, appeared on Nevada Newsmakers on December 26th to discuss what the R&D tax issue means to his firm and others like his. Watch the program below.
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.
In the News
A Research Tax Deduction Change May Go Away. Some Business Pain Won’t.
Dawn Cartier, the founder of CivTech, a consulting engineering firm focused on traffic design talked with the Wall Street Journal.
Politico Influence
Read about the launch of the Engineer Innovation campaign in Politico Influence.
Our R&D Advocacy Goes National
Read Linda Bauer Darr's Tuesday Letter on the R&D campaign.
