Senate Budget Committee Proposes Permanent TCJA Extension

Earlier this year, in March, the House introduced the “American Innovation and R&D Competitiveness Act of 2025,” which would immediately restore the ability to deduct all research expenditures in the year incurred, as well as a retroactive fix for tax years beginning after 12/31/2021. However, the bill currently remains with the House Ways and Means Committee and has not yet been scheduled for a vote.

On April 5, 2025, the Senate approved its own budget proposal, by a vote of 51-48, to permanently extend the Tax Cuts and Jobs Act (TCJA) of 2017. The proposal proceeds to the House for approval and opens the door for additional portions of the President’s plan. If approved, Congress could then proceed with putting together actual legislation and ultimately vote on a final bill. Leaders in the House are hoping for a House vote this week before Congress breaks for a two-week recess.

What does this mean?

While the initial House and Senate plans differ, both the House and Senate are pushing for legislation aimed at addressing various tax cuts, expense treatment, and overall governmental budget. Upcoming votes and reconciliation between the House and Senate will dictate next steps towards potential repeal of R&D amortization and restoration of immediate expensing for businesses.