Arlington, Va. (April 28, 2022) – Following the U.S. Senate formalizing the conferees for the Bipartisan Innovation Act, the Aerospace Industries Association (AIA) President and CEO Eric Fanning issued the following statement:
“America’s competitive edge has never been more essential, and the headwinds have never been stronger. Strategic investments in U.S. research and technology, STEM education, and domestic manufacturing are required to help restore America’s global competitiveness and support our national security. The Bipartisan Innovation Act conference committee is an ideal way for Congress to finalize the details of these critical investments.
This conference process is also an excellent opportunity for Congress to take immediate steps to stop the harmful effects of a recent tax law change affecting private investment in R&D. Today, 71 percent of America’s R&D spending originates in the private sector. Yet, while the Chinese government is doubling down on incentives for innovation, we are forcing companies to spread R & D expenses over five years. That means for every $100 U.S. companies spend to innovate, Chinese companies can deduct $200, ten times more than American ones can.
Leveraging private capital for the public good is a win-win. And such incentives are a perfect complement to the federal investments Congress will work out during these negotiations. We urge bipartisan leaders to include a delay to encourage and enable private investment in innovation by delaying the R & D tax change as we race toward tax day.”