FOR IMMEDIATE RELEASE
May 12, 2025
CONTACT: [email protected]
American Entrepreneurs and Small Business Owners Call on Congress to Invest in U.S. R&D Through Reconciliation
Washington, D.C. – Today more than 130 small business owners and entrepreneurs sent a letter to House and Senate leadership calling for the permanent restoration of full tax deductibility of research and development investment in the year businesses incur the expense as part of the reconciliation package.
This issue already has strong bipartisan and bicameral support with Senator Young (R-IN) and Senator Hassan’s (D-NH) introduction of the American Innovation and Jobs Act (S. 1639) and its companion House bill the American Innovation and R&D Competitiveness Act of 2025 (H.R. 1990).
“We commend the bipartisan action to restore Section 174 incentives that enable small businesses nationwide, including SSBA’s members, to fully reinvest in innovation, grow their operations, and create critical job opportunities,” said Small Software Business Alliance (SSBA) Executive Director Alexandra Cooke. “Inclusion of this bicameral solution in the larger reconciliation package is an essential first step towards providing immediate relief and stability to the small businesses and entrepreneurs at the heart of our economy.”
Understanding the resource constraints both chambers are working under, this proposal would unleash innovation by small businesses while aligning squarely with Congress’ tax reform objectives. In order to fully realize these shared goals, the final measure must permanently provide immediate expensing for both foreign and domestic expenditures and that the deduction apply retroactively.
At this crucial moment as Congress considers a reconciliation package designed to drive domestic economic growth and job creation, the Section 174 incentives are a pro-growth solution that will directly spur capital investment, promote innovation, and strengthen the American workforce and small business ecosystem.
“We urge Congress to include these measures as they were introduced in the reconciliation process and pass them this year, ensuring that America’s small businesses have the necessary tools and resources to sustain economic growth and remain globally competitive.”
###
About SSBA
The Small Software Business Alliance represents small and medium technology companies, independent developers, and other small business advocates in creating tax policies that enable American small businesses to compete and win on the global stage. The SSBA is advocating to permanently restore the full expensing of research and development (R&D) investments critical to the long term success of small technology companies.