Husted backs bill to support American innovation, outcompete China

May 12, 2025
“The United States is the best country in the world, and, to ensure that remains true, we must outpace global competitors, especially Communist China. America’s future prosperity and safety depend on our investment in R&D.”
WASHINGTON – Sen. Jon Husted (R-Ohio) joined Sens. Todd Young (R-Ind.) and Maggie Hassan’s (D-N.H.) American Innovation and Jobs Act as an original cosponsor. The bill would expand and strengthen research and development (R&D) by small businesses and startups in the U.S. to help America outcompete and out-innovate global threats like China, which invests significantly in R&D.

“The most technologically advanced nations are the ones that win economically and militarily. This bill gives small businesses—including those in Ohio—a break by cutting taxes so they can fuel innovation instead of worrying about the costs of R&D. The United States is the best country in the world, and, to ensure that remains true, we must outpace global competitors, especially Communist China. America’s future prosperity and safety depend on our investment in R&D. Let’s get this done,”said Husted.

Companies and startups investing in R&D have long been able to claim a tax credit for or deduct their investments, which helps them develop innovative products that create jobs and strengthen the economy. In 2017, Congress passed the Tax Cuts and Jobs Act, which included a provision that allows full expensing of R&D in the first year that a company incurs the expense. That provision expired in 2022. This bill would extend the provision and make it permanent, which would open the door for America to invest more in cutting-edge technologies.

“The United States is locked in a competition to ensure we maintain our position as the global leader in scientific and technological innovation. Our legislation would incentivize job-creating R&D activity in the United States—particularly among start-ups—to drive our innovation future, strengthen international competitiveness, and protect our national security. Congress must pass this legislation,”said Young.

The bill would also permanently restore full expensing of R&D costs while allowing businesses to retroactively take advantage of the deduction for the tax years during which full expensing had expired.

“As many small businesses struggle with rising costs, this bipartisan legislation cuts taxes for small businesses that invest in innovation, which will also help the United States continue to outcompete our adversaries like China,”said Hassan.

The American Innovation and Jobs Act would:

Sens. James Lankford (R-Okla.), Jeanne Shaheen (D-N.H.), Steve Daines (R-Mont.), Mark Warner (D-Va.), John Barrasso (R-Wyo.), Jacky Rosen (D-Nev.), Thom Tillis (R-N.C.), Gary Peters (D-Mich.), Roger Marshall (R-Kan.), Alex Padilla (D-Calif.), Tommy Tuberville (R-Ala.), Patty Murray (D-Wash.), John Kennedy (R-La.), Amy Klobuchar (D-Minn.), Pete Ricketts (R-Neb.), Mark Kelly (D-Ariz.), Katie Britt (R-Ala.), Tim Kaine (D-Va.), Shelley Moore Capito (R-W.Va.), Catherine Cortez Masto (D-Nev.), Deb Fischer (R-Neb.), Tammy Baldwin (D-Wis.), Jerry Moran (R-Kan.), Ben Ray Lujan (D-N.M.), Bill Hagerty (R-Tenn.), Chris Coons (D-Del.), Markwayne Mullin (R-Okla.), Elissa Slotkin (D-Mich.), Roger Wicker (R-Miss.), Angus King (I-Maine), Ted Budd (R-N.C.), Jon Ossoff (D-Ga.) and Martin Heinrich (D-N.M.) also cosponsored the legislation.

Full text of the bill can be foundhere.