The Impact of
Cancelling Amortization

A LOOK AT THE NUMBERS

The cancellation of amortization would increase America's standing in the world economically, while providing real benefits to companies and employees.

.15%

Increase in GDP

.26%

Increase in Capital Stock

(amount of shares companies can sell)

.12%

Increase in wage rates

30,600

New Full-Time Jobs created

We oppose R&D (Research and Development) amortization, which becomes effective in 2022 under federal tax legislation passed in 2017. You can find a clear explanation of the legislation here. R&D amortization should be repealed now.  R&D amortization discourages innovation by requiring companies to spread tax deductions for R&D over 5 years instead of getting a current year tax deduction, which has been the law since President Eisenhower.

R&D amortization is an anti-growth and anti-competition policy that discourages the future innovations that will propel American economic growth, and could result in the overstatement of taxable income. Risk taking in R&D should be encouraged. Cancelling R&D amortization will help to ensure a vibrant and innovative US economy. Furthermore, full tax deductibility of R&D will help to ensure that high tech startups will be able to thrive, thereby creating American jobs and boosting the economy.