FOR IMMEDIATE RELEASE
January 16, 2024
Contacts:
Andy Barnes, abarnes@cebn.org, Tel: 202-785-0507, ext. 1503
Washington, D.C. – Lynn Abramson, President of the Clean Energy Business Network, offered the following statement in response to the announcement of a bipartisan agreement on a tax framework that includes a retroactive restoration of Section 174:
“CEBN applauds Chairman Wyden and Chairman Smith for crafting a strong bipartisan tax package that supports both businesses and families. This bipartisan framework would provide immediate relief to small businesses working in innovation that have been hit with devastating tax liabilities. In particular, restoration of the R&D tax deduction is a critical step to ensuring the American innovation economy continues its growth in the clean energy sector and beyond. It is now imperative that congressional leaders work to pass this package as soon as practicable before the 2023 tax filing season begins.”
The framework would allow for immediate expensing on domestic R&D expenses incurred after December 31, 2021 until January 1, 2026. This tax deduction previously enabled immediate expensing for nearly 70 years until changes made in the 2017 Tax Cuts and Jobs Act went into effect in 2022. The U.S. is currently one of just two developed countries with a restriction on firms’ ability to immediately deduct R&D expenses. EY has projected that failure to restore immediate R&D expensing would cost the American economy up to 169,000 jobs and $10.1 billion in R&D investments annually.
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The Clean Energy Business Network (CEBN) is the small business voice for the clean energy economy, working to enhance opportunities for clean energy providers through policy support, market and technology education, and business development assistance.
