The Information Technology Industry Council, an industry trade group, recently applauded the introduction of the Build It in America Act.

U.S. Rep. Jason Smith, R-Mo., chairman of the House Ways and Means Committee, introduced the bill,  according to a June 9 news release.

“We welcome the House Ways and Means Committee’s efforts to modernize and reform the U.S. tax code and advance U.S. competitiveness,” ITI CEO Jason Oxman said in the release.

The measure preserves the option for businesses to deduct research and development expenses in the year they are incurred through 2025, the release said. ITI has long advocated for changes to American tax laws and lobbied Congress to fund research and development in the country.                

In terms of financial incentives for research and development, the U.S. is now ranked 31st out of 38 nations in the Organization for Economic Co-operation and Development, the news release said. Since 2022, the U.S. has reportedly become even less of a desirable location for the advancement of new innovations because businesses are currently required to spread out their R&D expenses over a five-year period rather than deducting them in the year they are incurred.

They also cannot include depreciation and amortization in the amount of business interest expenses that a taxpayer may deduct, nor can they fully depreciate the full cost of investments for some business assets and equipment, according to the release.                     

“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," Oxman said in the release. "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.”