Late last week, House Ways and Means Committee Chairman Kevin Brady (R-TX) introduced the Tax Cuts and Jobs Act. The policy changes outlined in the legislation would promote economic growth, support middle-class families, create jobs, simplify the tax code, help American workers and small businesses, and remove incentives to send jobs and capital overseas.
The bill, which was co-sponsored by Speaker of the House Paul Ryan (R-WI), would be the most sweeping tax reform the nation has seen in over three decades if signed into law.
The legislation would also include major reductions in individual, business and corporate tax rates as well as the removal of complexity throughout the tax code and several business credits and incentives. However, Research and Development (R&D) Tax Credit would be preserved. If implemented into law, the Invent and Manufacture in America Act would phase in an increase to the R&D Tax Credit by up to 25 percent for companies that perform the majority of their manufacturing in the U.S.
“I applaud our elected officials for looking for solutions that will strengthen U.S. businesses and expand economic opportunities for all Americans,” said Dhaval Jadav, alliantgroup CEO. “I’m especially heartened to see that the bill keeps in place the R&D Tax Credit. We have seen first-hand at alliantgroup how critical the R&D Tax Credit has been in helping businesses grow, create jobs and remain competitive and innovative.”
“This legislation contains a number of commonsense reforms that would benefit American workers and U.S. businesses,” said Dean Zerbe, alliantgroup National Managing Director and the former Senior Counsel to the U.S. Senate Finance Committee. “I commend Chairman Brady for seeking solutions that will encourage economic growth and offer tax relief to the middle class and American workers.”
Read more about the bill here.