TECNA Statement on Senate Amendment of R&D Expensing Provisions in H.R. 1, the One Big Beautiful Bill Act

May 19, 2025
Contact: Jennifer Young, CEO | jyoung@tecna.org | +1.412.545.3493 | www.tecna.org

The Technology Councils of North America (TECNA) commends the Senate for advancing critical pro-growth tax policy through its passage of the amended tax reconciliation package. In particular, we are encouraged that the final Senate version includes permanent full expensing of research and development (R&D) under Section 174, along with retroactive relief for small businesses – specifically, companies with average annual gross receipts under $31 million.

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 are especially grateful to Chairman Mike Crapo and other Senate leaders for their work to secure these important provisions. TECNA also continues to appreciate the House’s leadership, particularly that of Chairman Jason Smith, in prioritizing R&D expensing earlier this year.

As the reconciliation process proceeds, TECNA urges both chambers to preserve permanent R&D expensing and the small business retroactivity provision in the final legislative package. Doing so will empower innovation-driven businesses to reinvest in R&D, scale operations, and retain critical talent during a pivotal time for the U.S. economy.

While TECNA is not taking a position on the broader reconciliation bill, we strongly support the inclusion of these R&D provisions and will continue working with lawmakers in both chambers to ensure the final package delivers meaningful outcomes for America’s small and mid-sized technology companies.

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.