BIO urges extension of R&D tax incentives

US trade group the Biotechnology Innovation Organization (BIO) has joined more than 1,300 companies and associations in signing  a letter sent to congressional leaders yesterday to urge extension of longstanding tax incentives for research and development.

The signatories, who “collectively employ millions of Americans,” called for urgent passage of existing legislation designed to undo 2017 provisions that disincentivize R&D and investment.

The BIO points out that, as of the 2022 tax year, full deductions for R&D expenses must be spread over five years, cutting the deduction to 20%. But the nearly 70-year-old 100% deduction helps America compete with countries like China, where the R&D deduction is effectively 200%.