CLS prepares for pro-innovation advocacy ahead of fall sessionBack
Congress has entered its summer recess, and CLS is continuing its advocacy for pro-innovation policies and preparing for the fall session.
We are fighting to restore the full and immediate tax expensing of research and development costs, which was revoked in 2022 and is a serious risk to our state’s life sciences ecosystem. To build urgency on this issue in Congress, CLS is looking to compile stories and data from our membership on the impact of this tax policy.
For example, one CLS member, a clinical stage company with under 500 employees, is investing heavily in R&D, but it is now required to capitalize over $300 million of R&D expenditures in 2022. This means the company, which is not yet profitable, has positive taxable income rather than large taxable losses. Additionally, because of the new complexity, financial and tax reporting costs increased. The tax liability and higher costs directly reduce cash flow and limit investment in R&D.
If your company has assessed the impact of amortizing, rather than fully deducting, R&D costs on your business, please contact Chris Cunningham and Anthony Theissen to share your calculations, impact, and story to help broaden our advocacy.