WASHINGTON — Senators are considering restoring a more generous tax break for companies’ research and development spending as part of a slimmed-down economic competitiveness bill focused on boosting domestic semiconductor manufacturing.
Lawmakers discussing the “chips-plus” bill that the chamber aims to take an initial procedural vote on Tuesday are “contemplating” adding in the provision, Sen. Todd Young, R-Ind., told reporters.
As of this year, companies must deduct their domestic R&D expenses over five years instead of all upfront, making the tax break less lucrative. Young said senators are considering retroactively delaying the onset of the requirement until after 2022, a shift that would cost only $2 billion over the decadelong budget window. That’s because while it would cost far more up front, it would then score as raising revenue in future years.
