Message From Beth -- November 21, 2023
ACEC continues to work on the R&D Tax Amortization issue that is impacting approximately 58% of engineering firms surveyed by the ACEC Research Institute. Among those impacted, the average will be a loss of nearly $1.5 million (median loss of $400,000). * The tax change went into effect in 2022 and forces firms to amortize R&D costs over five years, instead of deducting expenses the year they occurred. The misguided change creates a disincentive for investment in innovation and places the U.S. at a competitive disadvantage to other countries that provide greater incentives for R&D.
As part of the advocacy strategy, ACEC has invested in a public relations effort to bring widespread awareness to the issue through a targeted ad campaign. Ohio has been selected as a state to push the R&D tax fix as part of this PR effort. You may see the new TV spot or op-ed pieces around the state written by ACEC Ohio and some of our member companies. Click here to see advertisement https://www.youtube.com/watch?v=oWc1PLne1SM&t=6s
What can you do now to continue to push Congress on this issue:
House and Senate tax-writers are discussing parameters of a compromise tax package that would include a multi-year fix to R&D amortization, as well as other business and family tax provisions.
Congress needs to understand the urgency of fixing R&D amortization before the end of the year. Even if you contacted your Members of Congress earlier this year, we need you to take action again.
Click Here to Contact Your Representative and Senators
Wishing you a blessed Thanksgiving with your family and friends,
* Source: ACEC Research Institute 2023 Q4 Engineering Business Sentiment Survey.