Current senate bill to restore treatment of R&D expenses to pre 2022 treatment is S.866.
https://www.congress.gov/bill/118th-congress/senate-bill/866...
Call or write you senator.
https://www.congress.gov/bill/118th-congress/senate-bill/866...
Call or write you senator.
--
As a resident of [STATE], I'm writing to express my dismay at some very recent specific tax changes negatively impacting small businesses innovating in technology, as well as express my support for a recently introduced bill to unwind those changes (S.866 - American Innovation and Jobs Act).
As both a software engineer and entrepreneur, changing software development expenses to be exclusively treated as R&D expenses amortized over many years will harm our country's ability to create innovative companies on the frontier of technology, as smaller businesses that take up-front losses in exchange for growth and deferred income will be dramatically penalized and go out of business. Conversely, large companies with established revenue and credit will not be harmed, increasing their ability to reduce competition in the market. So many of America's great companies in the last decades have come from a small number of people working together on software and hardware, losing money up front to gain money in the future. If you cannot write off the up-front expenses as truly spent money with uncertain return, those businesses cannot start.
It's a lose-lose-lose - this change hurts the little guys, helps the incumbent big guys, and will reinforce competitive sclerosis relative to our geopolitical competitors.
I don't know what the exact right answer is, or if S.866 is it - but the current situation is certainly not correct. If we want America to be competitive and create high-paying modern jobs, we can't tax new companies to death before they have a chance to get started.
"As a concerned citizen and advocate for the technology sector in our great nation, I am writing to express my strong support for S.866, the American Innovation and Jobs Act. I believe this legislation is crucial for fixing the unfair tax treatment faced by startups, technology companies, and software engineers, which together form the backbone of innovation and economic growth in the United States.
The bill will make it easier for startups and small businesses to thrive, create jobs, and compete in the global market. Additionally, the legislation will also make it more attractive for talented software engineers to choose careers in this vital industry.
Our nation's ability to maintain its competitive edge in the global market depends heavily on the health and vibrancy of our technology sector. By passing S.866, we can ensure that our startups and tech companies have the resources they need to innovate, create jobs, and contribute to the economy. Furthermore, this legislation will help attract and retain top-tier talent in software engineering, an essential component of our country's continued success in the tech industry.
As your constituent, I kindly urge you to support and vote in favor of the American Innovation and Jobs Act, S.866. This bill is a vital investment in our nation's future, and its passage will undoubtedly lead to continued growth and prosperity for the United States in the competitive global market.
Thank you for your attention to this important issue, and I appreciate your dedication to representing the best interests of our community and the nation as a whole."