The Aerospace Industries Association and 31 small and medium-sized businesses have called on Congress to approve a bill that would foster innovation in the aerospace and defense sector through the restoration of research and development incentives.
In a Tuesday letter to congressional leaders, AIA and supply chain companies stated that the requirement to amortize R&D expenses over a period of five years has impacted their ability to invest in research and prompted some businesses to lay off up to 40 percent of their personnel.
“For these reasons, we fully support The Tax Relief for American Families and Workers Act, particularly the restoration of full-year expensing for R&D expenditures, and request that you bring this legislation to the floor for a vote as soon as possible,” they noted.
The association and the companies stressed that adopting a tax code that supports small businesses, advances the development of new technologies and incentivizes job creation efforts is key to U.S. national security and economic competitiveness.
Last May, AIA’s 35 small business members urged Congress to act on two measures that would restore tax incentives for R&D work.