Pass the Tax Relief for American Families and Workers Act
The bipartisan Tax Relief for American Families and Workers Act would restore three vital pro-growth tax policies that have expired or are being phased out.
Passing this bill would strengthen the U.S. economy, create American jobs and increase America’s competitiveness.
Read Business Roundtable's latest statement here.
Expired on December 31, 2021
Full Expensing of Research and Development (R&D) Investments
- As of 2022, businesses are required to expense R&D investments over five years rather than in the same year the investments occurred, which is a damaging departure from 70 years of bipartisan pro-innovation policy.
- The U.S. is now one of only two developed countries without immediate expensing for R&D.
- China is doubling down on incentives to bolster R&D, while the U.S. is making it more expensive.
- More than 10,000 American jobs will be lost each year over the next decade without immediate R&D expensing.
Expired on December 31, 2022
Full Expensing of Investments in New Equipment, Machinery and Technology
- Starting in 2023, businesses can only expense 80% of investments in new equipment, falling to 60% in 2024, 40% in 2025, 20% in 2026 and eliminated completely in 2027.
- The elimination of full expensing discourages domestic investment, limiting opportunities for businesses and workers in the U.S.
- Full and partial expensing has been in the tax code for 21 of the past 23 years and supported by Republicans and Democrats.
- Permanent full expensing would create 73,000 American jobs.
Expired on December 31, 2021
Limited Interest Deduction on Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
- As of 2022, the business interest deduction is restricted to 30% of a company’s earnings before interest and taxes (EBIT) rather than EBITDA. This is a tax increase.
- Switching from EBITDA to EBIT makes it more expensive for businesses to invest in America, resulting in slower job creation, smaller wage increases and lower overall economic growth.
- The U.S. is now an international outlier on business interest deductibility, with no other developed country basing the deduction on EBIT.
- A stricter interest expense limitation will cost the U.S. economy 867,000 jobs, $58 billion in lost wages and $108 billion in GDP.
Additional Resources
Download the one-pager
