Earlier this month, Colorado BioScience Association (CBSA) partnered with Biotechnology Innovation Organization (BIO) and sent a letter to Congress urging immediate legislative action to repeal the harmful R&D amortization provision that went into effect in January. The 2017 Tax Cuts and Jobs Act (TCJA) changed the longstanding deduction for R&D expenditures to a mandatory five-year amortization for domestic R&D and fifteen-year amortization for foreign R&D, with the effective date delayed until 2022.
R&D, especially in life sciences, supports economic growth. For years, R&D has been encouraged with both tax and non-tax incentives. For CBSA member companies, this policy will divert critical funds away from small R&D-intensive companies, potentially doing long-term damage to the development of the future treatments and limiting life-saving innovations, products, and services that improve and save lives.
Negative Impacts of R&D Amortization:
- Threatens Capital Investment
- Developing the next generation of breakthroughs takes significant…
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- Developing the next generation of breakthroughs takes significant…
