The Irrigation Association (IA) has collaborated with over 1,000 businesses across various industries in urging Congressional leaders to extend three crucial tax policies. The joint letter emphasizes the immediate need for the extension of policies related to research and development expensing, interest deductibility, and full expensing.

The association stresses the urgency of this matter, stating, "Failing to do so will put hundreds of thousands of family-supporting jobs, cutting-edge innovation, and pro-growth investments in America at risk."

 

The three tax policies the IA is advocating for are:

1. Immediate Research and Development Expensing: The letter underscores the importance of innovation for the U.S. economy and national security. It highlights the adverse impact of recent changes requiring businesses to amortize research and development expenses over several years, making R&D more expensive and jeopardizing thousands of jobs.

2. Pro-Growth Interest Deductibility Standard: Emphasizing the role of debt financing in business growth, the letter addresses the shift in tax policy that impacts financing costs. The stricter standard increases taxes and financing costs, particularly affecting capital-intensive companies and posing a threat to jobs and economic growth.

3. Full Expensing: The IA advocates for the restoration of full expensing, allowing businesses to deduct the full cost of equipment and machinery in the year of purchase. With this policy phasing out in 2023, the letter stresses its importance for smaller businesses, reducing after-tax costs, stimulating investment, and maintaining competitiveness globally.

https://irrigationandlighting.org/news/ia-presses-congress-for-tax-policy-designed-to-support-innovation/