Bill 119 HR 1990, also known as the Research and Experimental Expenditures Deduction Restoration Act, aims to amend the Internal Revenue Code of 1986 to reinstate the deduction for research and experimental expenditures. This deduction was previously available to businesses to encourage innovation and investment in research and development.
The bill seeks to provide tax relief to businesses that engage in research and development activities by allowing them to deduct a portion of their expenses related to these activities. By reinstating this deduction, the government hopes to incentivize businesses to invest in research and development, which can lead to technological advancements, job creation, and economic growth.
Supporters of the bill argue that reinstating the deduction for research and experimental expenditures will help businesses stay competitive in a rapidly changing global economy. They believe that encouraging innovation through tax incentives will ultimately benefit the economy as a whole.
Opponents of the bill may argue that reinstating this deduction could lead to a decrease in tax revenue for the government, potentially widening the budget deficit. They may also question whether businesses truly need this tax incentive to invest in research and development, or if they would do so regardless.
Overall, Bill 119 HR 1990 aims to support businesses in their research and development efforts by providing them with a tax deduction for related expenses. The impact of this bill on the economy and government revenue remains to be seen.