Ways and Means Republicans Unveil Pro-Growth Agenda For a Healthy American Economy

Republicans on the House Ways and Means Committee unveiled a series of bills recently that are part of Republicans’ agenda for economic growth and increasing American innovation in U.S. medicines and cures as we continue to fight the novel coronavirus.

America can be the world leader in innovation if we focus on economic growth and making the U.S. medically independent. We have an agenda for a healthy American economy, and it starts with bringing manufacturing back to the United States--particularly on the very medical supplies and drugs we need today. America is going to harness innovation to cure coronavirus, return drug manufacturing to the United States, and make America healthy again.

The following legislation was unveiled as part of this pro-growth agenda.

The American Innovation and Competitiveness Act (AICA), by Rep. Ron Estes (R-KS). 

• Ensures that America continues to be the global leader in innovation by repealing the requirement to amortize R&D costs beginning in 2022.
• Grows our economy by restoring immediate R&D expensing that has long supported jobs and innovation.
• Incentivizes long-term investments in technological breakthroughs by allowing businesses to deduct R&D costs in the tax year that they occur.

CLICK HERE for a one-pager on Rep. Estes’s bill.

Accelerate Long-Term Investment Growth Now (ALIGN) Act, by Rep. Jodey Arrington (R-TX). 

• Makes permanent TCJA’s full expensing provisions.
• Incentivizes long-term investments by providing businesses an opportunity to deduct certain expenses in the tax year in which they occur.

CLICK HERE for a one-pager on Rep. Arrington’s bill.

Pushing Research & Development Into Hyperdrive by Doubling the R&D Tax Credit, by Rep. Jackie Walorski (R-IN).

• This proposal doubles the current R&D credit.
• Will help make R&D investments in the United States more competitive in the global marketplace and help keep America a leader in innovation.

CLICK HERE for a one-pager on Rep. Walorski’s bill.

Coronavirus Relief for Working Seniors Act of 2020, by Rep. Jackie Walorski. 

• Rewards work by temporarily eliminating the penalty on certain seniors who choose to keep working.
• Provides relief to seniors who may want or need to earn at higher levels than planned in 2020.
• Ensures more workers are available to reopen the economy.

CLICK HERE for a one-pager on Rep. Walorski’s bill.

Advanced Medical Manufacturing Equipment Credit, by Rep. Brad Wenstrup (R-OH). 

• Investments in advanced manufacturing will help the United States regain its status as a global leader in manufacturing
• It will help retain and create high paying jobs, support domestic innovation, and enhance national security and public health
• 30 percent tax credit for new investments in advanced manufacturing equipment or machinery used in the U.S. to manufacture drugs, medical devices, or biological products.
• The credit phases down to 20 percent in 2028, 10 percent in 2029, and phases out in 2030.

Domestic Medical and Drug Manufacturing Tax Credit, by Rep. Wenstrup. 

• Lowers tax rate on the income from the domestic manufacturing and sales of active pharmaceutical ingredients (API) and medical countermeasures.
• By providing a credit of 10.5 percent of the net income from the sale of these important medical products, this effectively cuts the corporate tax rate of 21 percent in half on eligible profits.
• The credit is limited by the wages allocable to the domestic production, which supports good high-paying jobs in the United States.

CLICK HERE for a one-pager on both of Rep. Wenstrup’s bills.

Bringing Back American Jobs Through IP Repatriation, by Rep. Darin LaHood (R-IL). 

• American companies can bring back their IP developed offshore without any immediate U.S. tax cost.
• Companies would still have to pay tax if they sold the IP in the future.
• Could continue to hold and use formerly foreign IP within the United States to support U.S. production and associated research and development.
• Supports high-paying jobs in production and applied research and, ultimately, a higher standard of living for all Americans.

CLICK HERE for a one-pager on Rep. LaHood’s bill.