TECNA Statement on Congressional Passage of R&D Expensing Legislation

July 2, 2025
Contact: Jennifer Young, CEO | jyoung@tecna.org | +1.412.545.3493 | www.tecna.org

The Technology Councils of North America (TECNA) applauds Congress for passing legislation that includes critical reforms restoring full and permanent expensing for R&D investments under Section 174. These provisions represent a major step forward in strengthening American innovation, small business growth, and long-term economic competitiveness.

TECNA has long advocated for the restoration of immediate R&D expensing. The inclusion of permanency provides certainty that enables businesses to plan and invest in job creation, job preservation and innovation fueling growth.  We are especially encouraged by the inclusion of retroactive relief for small businesses, allowing companies with annual receipts of $31 million or less to reclaim previously incurred R&D expenses—a vital provision for early-stage and growth-oriented tech companies.

These provisions are central to the vitality of America’s innovation economy and will provide both long-term certainty and immediate relief to small and mid-sized technology businesses that have been disproportionately impacted by the amortization requirement. Restoring full R&D expensing, especially on a permanent basis, reinforces the United States' commitment to global competitiveness, job creation, and high-value economic growth.

We appreciate the leadership of Senate Finance Committee Chairman Mike Crapo and House Ways and Means Committee Chairman Jason Smith for recognizing the urgent need to restore and make permanent R&D expensing. Their work reflects a strong commitment to supporting small business innovation and maintaining U.S. leadership in emerging technologies.

About TECNA
The Technology Councils of North America (TECNA) represents approximately 60 regional technology trade organizations that collectively support over 22,000 technology-focused businesses across North America. TECNA advocates for federal policies that enable innovation, entrepreneurship, and long-term economic growth. Learn more at www.tecna.org.