Biotechnology Advocates Press Congress for R&D Tax Reform
In a coordinated effort on the national stage, Georgia Life Sciences is joining forces with 47 other state biotechnology associations under the Council of State Biosciences Associations (CSBA) umbrella to urge congressional action on research and development tax amortization legislation.
The coalition has sent a formal letter to congressional leadership calling for the immediate passage of the American Innovation and R&D Competitiveness Act (H.R. 1990), bipartisan legislation sponsored by Representatives Ron Estes (D-KS) and John Larson (R-CT). The bill aims to repeal harmful research and amortization provisions that went into effect in 2022 under the Tax Cuts and Jobs Act.
Georgia Life Sciences representatives are heading to Washington DC this week alongside fellow CSBA members to meet directly with Georgia legislators. The group will advocate for this critical tax reform, which would restore immediate expensing of R&D expenditures rather than requiring companies to amortize these deductions over five years for domestic expenditures or 15 years for foreign expenditures.
The current mandatory amortization requirements are "already diverting much-needed funds away from small R&D-intensive companies, potentially jeopardizing the development of future treatments and negatively impacting the local economies where these companies are established," according to the CSBA letter.
During their Capitol Hill visits, the Georgia Life Sciences delegation will also address other pressing issues facing Georgia’s life sciences community while emphasizing the importance of supporting innovation in an industry dominated by pre-revenue companies developing critical medical breakthroughs.
