Research and Development Expensing

Floor Speech

BREAK IN TRANSCRIPT

Mr. YAKYM. I thank the gentleman from Kansas, my good friend, for the time and for organizing this important event and for this Special Order.

I also thank the gentleman for his leadership on promoting pro-growth research and development policies.

Mr. Speaker, we are living through a time of great economic uncertainty created by the Biden administration.

This Republican House has an opportunity to provide some certainty to all American families and businesses by bringing back full and immediate deductions for research and development, capital expenditures, as well as by undoing lower interest deductibility limitations. Doing so would help create high-quality, good-paying jobs across our economy for businesses of all shapes and sizes.

My district in northern Indiana is no different. Many Hoosier companies have reached out to tell me what fixing those provisions would mean to them.

A major medical device company in my district had a $60 million impact in 2022, because they couldn't fully deduct their research and development expenses, and they expect a similar hit for 2023. That is a huge sum of money to be sucked out of our local economy unnecessarily.

However, the impacts aren't just felt in large gashes. There are thousands of less-visible cuts across Main Streets in my district, in our State, and across our country.

Family owned restaurants have told me they are putting off buying new kitchen equipment. Engineering firms that build our roads and bridges are holding off on new cutting-edge software. Also, suppliers to the R.V. and auto industry are spending less money on new machinery.

Mr. Speaker, the small businesses that are the engines of our economy have sand in their gears, and we have an opportunity to fix it.

About a month and a half ago, I was proud to lead a letter to Speaker

Mike Johnson signed by 145 of my non-Ways and Means colleagues calling for the return of full expensing for R&D and capital expenditures, as well as pro-growth interest deductibility. The high turnout shows just how important these provisions are to small businesses and workers across our great Nation.

I know my friend, Ways and Means Chairman Jason Smith, is hard at work on negotiations to fix these provisions. I hope both sides can come together on an agreement that provides wins for hardworking Hoosiers of Indiana's Second District.

I want to close by thanking Mr. Estes once more for his leadership in organizing this Special Order.

BREAK IN TRANSCRIPT

Source