We anticipate that the House could vote this week on the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024), legislation that would provide relief for engineering firms hurt by the new R&D amortization mandate, and ACEC member action is needed now to build support for the bill.
Because of a change in tax policy, firms that traditionally could deduct R&D expenses in the year they occur must now amortize those expenses over five years. This has created a significant tax burden for many firms and is causing cash flow problems. ACEC member firms report that they are putting on hold plans to hire, grow, and invest because of the higher tax bills they are paying.
H.R. 7024, a business and family tax package that would delay the R&D amortization requirement until 2026, was approved by the House Ways and Means Committee by a bipartisan vote of 40-3.
House leadership may schedule the bill for floor consideration and we need you to ask your Representative to vote for H.R. 7024. Even if you contacted your Members of Congress last year, please take action again.