Luján, Heinrich Introduce Bipartisan Bill to Support Innovative Businesses and Startups’ Research and Development in New Mexico

WASHINGTON — U.S. Senators Ben Ray Luján (D-N.M.) and Martin Heinrich (D-N.M.) introduced the bipartisan American Innovation and Jobs Act to support research and development (R&D) investments by innovative small businesses and startups. 

Currently, companies and startups investing in R&D can claim tax incentives that help them to invest in developing new, innovative products that lead to additional jobs and a stronger economy. The bipartisan American Innovation and Jobs Act builds on this by expanding the refundable R&D tax credit and extending it to more startups and small businesses. In addition, the bill reverses a change in the 2017 tax law that limits companies from fully deducting R&D investments each year.

“Investing in research and development is the heart of American economic strength and innovation. By restoring full R&D deductions and expanding the refundable tax credit for startups and small businesses, this bipartisan bill will help the U.S create new products, grow local economies, and maintain our competitiveness on the global stage,” said Luján. “I’m proud to reintroduce this bipartisan legislation to support innovation and good-paying jobs.”

“Innovation is the engine of a strong economy, and we need to make sure New Mexico’s businesses have the tools to keep that engine running,” said Heinrich. “These tax incentives will encourage more of our small businesses and startups to invest in the products and technologies that help us create jobs people can build their families around, spur economic growth, and maintain our nation’s competitive edge.” 

The bipartisan American Innovation and Jobs Act supports innovative businesses and helps create jobs by:

• Restoring incentives for long-term R&D investment by ensuring that companies can fully deduct R&D expenses each year 
• Raising the cap over time for the refundable R&D tax credit for small businesses and startups
• Expanding eligibility for the refundable R&D tax credit so that more startups and new businesses can use it 

Read the full text of the bill here.