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R&D Amortization: Take Action Now

Support for ACEC-backed legislation to repeal the 5-year R&D amortization requirement is building in the House and Senate, but more ACEC grassroots outreach is needed to build support for the repeal of this costly requirement.

Starting on January 1, 2022, Congress changed how firms deduct R&D expenses. Previously they could be deducted in the year they were incurred but now must be amortized over five years in most cases.

Amortization of R&D expenses is causing significant cash flow problems for engineering firms and creating a disincentive for investment in innovation. It will also place the U.S. at a competitive disadvantage to other countries that provide greater incentives for R&D.

There is bipartisan support for the American Innovation and R&D Competitiveness Act (H.R. 2673)/American Innovation and Jobs Act (S. 866) and with your help we can build momentum. Please use the link below to contact your Members of Congress and ask them to cosponsor H.R. 2673 and S. 866.


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