ITI Welcomes the U.S. House of Representatives Build It in America Act
WASHINGTON – Today, global tech trade association ITI welcomed the introduction of the Build It in America Act by U.S. House of Representatives Ways and Means Chairman Jason Smith (R-MO). Among its provisions, the bill restores the ability for companies to expense research and development costs in the year they occur through 2025.
“We welcome the House Ways and Means Committee’s efforts to modernize and reform the U.S. tax code and advance U.S. competitiveness,” said ITI President and CEO Jason Oxman. “By removing barriers businesses face when they invest in domestic research and development, the Build It in America Act would support U.S. jobs and spur U.S. innovation. It would also help mitigate rising interest costs, encouraging businesses to hire more people and expand their footprint in the U.S. ITI looks forward to engaging actively with members on both sides of the aisle as this important package moves through the U.S. Congress.”
ITI has long called for U.S. tax policy reform and urged the U.S. Congress to support U.S. research and development. The United States currently ranks 30th out of 38 Organisation for Economic Co-operation and Development (OECD) countries with respect to research and development incentives. Since 2022, the U.S. has become an even less attractive place to push forward new innovations because companies currently must amortize R&D expenses over five years rather than expense them in the year they occur. Further, they are not able to fully depreciate the full cost of investments for certain business assets and equipment or include depreciation and amortization in the amount of business interest expense that a taxpayer can deduct.