American Innovation and Jobs Act Proposed

This bi-partisan measure (S. 866) would rollback 2 key tax rules that support business development: 100% bonus depreciation (which was 100% in 2022 but dropped to 80% in 2023) and expensing of R&D costs (instead of amortizing them over 5 years, which began in 2022). Attempts to retain 100% bonus depreciation and expensing of R&D costs failed to be included in 2022 legislation. In October 2022, 400 manufacturers, trade associations, and chambers of commerce sent a letter to Congress urging these tax changes, but nothing happened. Let’s see if a new law can get done now. #IdeaoftheDay