R&D 174 Letter

A PDF of this letter can be viewed here.

October 11, 2022

October 11, 2022

The Honorable Chuck Schumer

Majority Leader

U.S. Senate

Washington, DC 20510

The Honorable Mitch McConnell

Minority Leader

U.S. Senate

Washington, DC 20510

The Honorable Nancy Pelosi


U.S. House of Representatives

Washington, DC 20515

The Honorable Kevin McCarthy

Minority Leader

U.S. House of Representatives

Washington, DC 20515

Dear Majority Leader Schumer, Minority Leader McConnell, Speaker Pelosi and Minority Leader McCarthy,

We, the undersigned businesses and trade associations collectively employing millions of Americans, write to urge Congress to take immediate action to reverse a harmful tax change that threatens jobs and innovation in America.

Innovation is one of America’s greatest strengths and a significant contributor to job and economic growth, competitiveness and national security. It is for these reasons that for nearly 70 years the tax code has recognized the importance of research and development by allowing businesses to fully deduct their R&D expenses in the same year. However, beginning this year, businesses must amortize or deduct these expenses over a period of years, making R&D more costly to conduct in the U.S.

Failing to reverse this change will cost well-paying jobs and reduce future innovation-directed R&D. Requiring the amortization of research expenses will reduce R&D spending and lead to a loss of more than 20,000 R&D jobs in the first five years with the number of lost jobs rising to nearly 60,000 over the following five years. Moreover, when accounting for the spillover effect from R&D spending, nearly three times as many jobs will be affected.1 This same study also found that for every $1 billion in R&D spending, 17,000 jobs are supported in the U.S.

As a result of this change, the U.S. is now one of two developed countries requiring the amortization of R&D expenses. Meanwhile, China currently provides a super deduction for R&D expenses up to an extra 100% of eligible R&D expenses in addition to actual R&D expenses. At a time of increasingly fierce global competition for research dollars, this change will make it harder for the next R&D dollar to be spent in the U.S. which will ultimately hurt future U.S. competitiveness.

The amortization requirement also poses a serious threat to our national security if not reversed. As the National Science and Technology Council has noted, R&D investments “are essential to

1 See EY, Impact of the Amortization of Certain R&D Expenditures on R&D Spending in the U.S. at i (2019), https://investinamericasfuture.org/ey-impact-of-the-amortization-of-certain-rd-expenditures-on-rd-spending-in-the-united-states/.

ensure that the United States remains able to secure and protect the American people in the face” of other countries increasing support for R&D.2

For these reasons, we respectfully urge Congress to act without delay to ensure that the tax code continues to support innovation as doing so will help secure America’s global leadership in innovation and its economic and national security future.



A Raymond Corporate North America Inc

Raymond Corporate NA


Abicor Binzel USA, INC.

Absolute Technologies

Accu-Mold, LLC


Advance Engineering Company


Aerospace Industries Association

Agios Pharmaceuticals

AICC, The Independent Packaging Association

Air-Conditioning, Heating & Refrigeration Institute

Alaska Chamber

Albert Basse Associates, Inc.

Alliance for Automotive Innovation

Alliance for Competitive Taxation

Allied Systems Company

AMD, Inc.

American Automotive Policy Council (AAPC)

American Bakers Association

American Chemistry Council

American Cleaning Institute

American Colors, Inc.

American Composites Manufacturers Association

American Council of Engineering Companies

American Forest & Paper Association

American Foundry Society

American Frozen Food Institute

American Mold Builders Association

American Welding Society

American Woodmark Corporation

Ames Chamber of Commerce

Amkor Technology

Amkor Technology, Inc

Ampere Computing

AMT- The Association For Manufacturing Technology

Analog Devices, Inc.

AnyLogic North America, LLC

Applied Materials, Inc.


AR State Chamber/AIA ARC-Tronics Inc.

Arizona Builders Alliance

Arizona Chamber of Commerce & Industry

Arizona Manufacturers Council

Asheville Area Chamber of Commerce (NC)


Associated Industries of Florida

Associated Industries of Missouri

Associated Industries of Vermont

Association for Uncrewed Vehicle Systems International

Association of Washington Business

Astera Labs, Inc.


Automated Pet Care Products, LLC (dba Whisker)

Autos Drive America

Avencell Therapeutics

AVL North America

Baker Hughes

Ball Corporation

BC Partners, LLC


Bell's Brewery

Biotechnology Innovation Organization

B-K Tool & Design, Inc.

Black Buffalo, Inc.

Bluewater Technologies Group, Inc.

BorgWarner Inc.

Boulder Scientific Company, LLC

Brewer Science

Brick Industry Association

Bristol TN/VA Chamber of Commerce

Brunswick Corporation

B-Unlimited, Inc

Business & Industry Association of New Hampshire

Business Council of Alabama

The Business Council of New York State, Inc.

Business Roundtable

Cadillac Casting, Inc.

California Manufacturers & Technology Association

Cambria Regional Chamber (PA)

Can Manufacturers Institute

Capital Area Manufacturing Council (MI)

Cardinal FG

Cardinal Glass Industries

The Carpet and Rug Institute


Cascade Die Casting Group, Inc.

Cashco, Inc.

Cast Aluminum Solutions

Cedar Rapids Metro Economic Alliance (IA)

Cellulose Insulation Manufacturers Association

Certis Oncology Solutions, Inc

Chamber of Commerce Hawaii

ChargePoint, Inc.

Charles River Laboratories International, Inc.


Cirrus Aircraft

Coastal Automotive (MI)

Cognizant Technology Solutions

Colorado Advanced Manufacturing Association

Colorado Chamber of Commerce

Compass Mortgage, Inc.

Composite Panel Association

Composites International, Inc.

Computing Technology Industry Association

Connecticut Business & Industry Association

Contemporary Control Systems, Inc.


Core Health & Fitness, LLC

Corning Incorporated

Council Bluffs Area Chamber of Commerce (IA)

Council of Industry of Southeastern New York (NY)

Cybernet Systems Corporation

Dearborn Holding Company, LLC

Delaware Manufacturing Association

DENSO International America, Inc.

Detroit Manufacturing Systems

Dunn-Edwards Corporation



ECIA - Electronic Components Industry Association

Edgewater Automation, LLC

Edward Segal Inc.


Energy Workforce & Technology Council (TX)



F&S Tool, Inc.

Falcon Plastics Inc.


Federal Equipment Company

Feyen-Zylstra, LLC

The Fynder Group, Inc.

Financial Executives International (FEI)

First Line Technology, LLC


Forging Industry Association

Fragrance Creators Association

Garden State Precast, Inc

GE Appliances, a Haier company

GE HealthCare


Genentech, A Member of the Roche Group

General Aviation Manufacturers Association (GAMA)

General Dynamics

General Plastics & Composites, LP

Giffin, Inc.

Glier's Meats, Inc.

Global Business Alliance

Global Imaging

Gowan Milling Company LLC

Grand Rapids Foam Technologies

Greater Durham Chamber of Commerce (NC)

Greater North Dakota Chamber

Greater Omaha Chamber (NE)

Greater Pittsburgh Chamber of Commerce (PA)

Greater Yakima Chamber of Commerce (WA)

Gresham Smith

Griffin Tool, Inc.

H3 Manufacturing

Halff Associates, Inc.

Haltec Corporation

Helicopter Association International (HAI)

Helms Performance Group

Hendrickson USA LLC


Hornady Mfg. Co.

Howe Corporation

HP Inc.

Hunter Industries

Huntington Ingalls Industries

Idaho Association of Commerce and Industry

Illinois Manufacturers’ Association

Image Options

ImageMark Business Services, Inc.

IMS Companies, LLC

INDA - Association for the Nonwoven Fabrics Industry

Independent Can Company

Indiana Manufacturers Association

Induron Coatings, LLC

Industrial Control Repair Inc.

Information Technology Industry Council

Intel Corporation

International Mold Corporation

International Paper

International Sleep Products Assn

Ionis Pharmaceuticals, Inc.

Iowa Association of Business and Industry

Jamison Door Company

Jessup Manufacturing

JOST International Corporation

Kansas Chamber and the Kansas Manufacturing Council

Keats Manufacturing Co.

Kennametal Inc.

Kentucky Association of Manufacturers


Koppers Inc.

The Kraft Heinz Company

Kreative Technologies, LLC

Kyocera AVX Components Corporation


Lacks Enterprises, Inc

LaFrance Corp

LAL Acquisition, Inc.

LDJ Manufacturing

Lear Corporation

Lechler, Inc.

Leggett & Platt, Inc.

Lockheed Martin Corporation

Louisiana Pacific Building Solutions

LSV Asset Management

Lucerne International Inc,

M4 Factory, Inc,



MAHLE Industries, Incorporated

Maine State Chamber of Commerce

Manufacturing Alliance of Philadelphia (PA)

Marshall Area Chamber of Commerce (MN)

Martin Yale Industries, LLC

Maryland Chamber of Commerce

Mason West

MBO America

Mercury Systems

Merritt Aluminum Products Company

Merritt Trailers Inc.

Metal Powder Industries Federation

Metals Service Center Institute

Metalsa Structural Products, Inc.

Metro Atlanta Chamber (GA)

Michelin North America, Inc.

Michigan Manufacturers Association

Michigan Polymer Reclaim, Inc.

Microchip Technology Incorporated

Micron Technology, Inc.


Miles Fiberglass & Composites Inc

Miniature Custom Mfg., LLC

Minnesota Chamber of Commerce

Mississippi Manufacturers Association

Modernistic Inc

Montana Chamber of Commerce

Morrell Group

Morrison Products, Inc.

Motor & Equipment Manufacturers Association (MEMA)

National Association of Chemical Distributors (NACD)

National Association of Manufacturers (NAM)

National Bulk Equipment, Inc.

National Business Aviation Association

National Defense Industrial Association (NDIA)

National Electrical Manufacturers Association

National Marine Manufacturers Association

National Tooling and Machining Association

National Wooden Pallet & Container Association

Natural Alternatives International, Inc.

North Carolina Chamber

NCTA - The Internet & Television Association

Nebraska Chamber of Commerce & Industry

Nelson Irrigation Corporation

Nevada Manufacturers Association

New Balance Athletics

New Holland Brewing Company LLC

New Jersey Business & Industry Association

New Mexico Business Coalition

NewHold Enterprises LLC

NextPhase Medical Devices LLC

Nielsen-Kellerman Co.

Niowave, Inc.

Non-Ferrous Founders' Society

North American Association of Food Equipment Manufacturers (NAFEM)

North American Die Casting Association

North Carolina Manufacturers Alliance (NCMA)

Northeast Pennsylvania Manufacturers & Employers Association

Northrop Grumman Corporation



Oakwood Metal Fabricating Co

The Oakwood Group

The Ohio Manufacturers' Association


Omnicell, Inc.

O'Neal Industries, Inc.


Oregon Business & Industry


Owens Corning

Panasonic Corporation of North America

Parsons Corporation

PBS Engineering and Environmental Inc.


Pennsylvania Chamber of Business & Industry

Pennsylvania Manufacturers' Association

PFI Holdco LLC

Pioneer Service Inc

Piston Group LLC

Plante & Moran, PLLC

Plastic Plate, LLC

Plastics Industry Association Plumbing Manufacturers International

PMA Technologies LLC

PMMI The Association for Packaging and Processing Technologies

Polymeric US

Precast/Prestressed Concrete Institute

Precision Machined Products Association

Precision Metalforming Association

Prestige Printing

Pridgeon & Clay, Inc.

Printing United Alliance

Professional Services Council (PSC)

Qualcomm Incorporated

Quanergy Systems, Inc. Quasonix, Inc.

R L Industries Inc.

Rare Disease Company Coalition

Raytheon Technologies

Regal Rexnord Corporation

Rennco Automation

Request Foods Inc

Rhode Island Manufacturers Association

RL Industries, Inc.

Roanoke Regional Chamber of Commerce (VA)

Robert Bosch LLC

Rockwell Automation Inc.

Rolls-Royce North America

Rosti North America (FKA: Plastic Components, Inc.)

RP Abrasives


Rubadue Wire Co., Inc.


Sarepta Therapeutics

Schaeffler Group USA

Schuylkill Chamber of Commerce

Scot Forge

Semiconductor Industry Association

Sequoia Automatic, Inc.

Shape Corp.

Silicon Valley Tax Directors Group

Simmons Knife & Saw

Skilled Manufacturing, Inc

Skyworks Solutions

Society of Chemical Manufacturers & Affiliates

Somerset County Chamber of Commerce (PA)

Source Elements


South Carolina Chamber of Commerce

SouthernCarlson, Inc.

Span Tech LLC

Specialty Tooling Systems

Star Iron Works, Inc.

Star Plastics, LLC

The State Chamber of Oklahoma

Stealth BioTherapeutics

Steel Manufacturers Association

Sturdy Corporation

T. Baker Smith, LLC


Tata Technologies Inc.


Technoform Glass Insulation NA Inc


Tennessee Chamber and Manufacturers Association

Texas Association of Business

Texas Association of Manufacturers

Texas Instruments Incorporated

Textile Care Allied Trades Association

Therma-Tron-X, Inc

Thomas & Hutton Engineering Co.

The Timken Company

Tooling Systems Group, Inc.

Trabon Printing Company, Inc.

Trademark Die & Engineering Inc.

Treated Wood Council

Triangle Package Machinery Company

Tri-Merit, LLC

Truck Trailer Manufacturers Association, Inc.

U.S. Chamber of Commerce

Umicore USA Inc

United Therapeutics Corp.

Utah Manufacturers Association

V3 Companies, Ltd.

Valley Industrial Association


Vermeer Corporation

Versa-Tags, Inc.

Vinyl Institute

Walker Tool & Die, Inc.

Water and Wastewater Equipment Manufacturers Association

Wells Printing Co., Inc

West Virginia Manufacturers Association

Westmoreland County Chamber of Commerce (PA)



The Willamette Valley Company LLC


Whisman Giordano & Associates, LLC

WhistlePig, LLC

WilliamsRDM, Inc.

Window & Door Manufacturers Association

Wisconsin Manufacturers & Commerce

ZF North America, Inc.

The Honorable Ron Wyden

The Honorable Mike Crapo

The Honorable Richard Neal

The Honorable Kevin Brady