<div>   <a href="https://avanan.url-protection.com/v1/url?o=https%3A//waysandmeansforms.house.gov/components/redirect/r.aspx%3FID%3D493875-3215566&amp;g=MDBmNTQyM2ZmMmFjNjM5OQ==&amp;h=MjdkZmNmOGViZTZlNTkyZTAwOGIzZDQzNTcwYTY5NzBiNWM0NjMwZDQ1ZDZiYTE0YTcxODExYWFiMjFkYmVmMg==&amp;p=YXAzOnRheGFuYWx5c3RzMzphdmFuYW46b2ZmaWNlMzY1X2VtYWlsc19lbWFpbDozNWFkYmUyZTcwNDFmMDZkZDU5ZDgzMzQ5YWQ3NjAyYjp2MQ==">View this email in your browser</a>                        Brady, McCarthy Introduce HR 11, the “Commitment to American GROWTH Act”  <table><tr><td>October 9, 2020 - PRESS RELEASE</td><td><a href="https://avanan.url-protection.com/v1/url?o=https%3A//waysandmeansforms.house.gov/components/redirect/r.aspx%3FID%3D493877-3215566&amp;g=NDlmMjE2NDFiODFhODhjZg==&amp;h=Y2JmMGE1MGY4MWQzOWFkYjMwNTllZWY2OGU3YTllNjljOWJjYmY3YzhhMjU4M2ZjMjAyNTgzZTEwYjJhZTg3Yg==&amp;p=YXAzOnRheGFuYWx5c3RzMzphdmFuYW46b2ZmaWNlMzY1X2VtYWlsc19lbWFpbDozNWFkYmUyZTcwNDFmMDZkZDU5ZDgzMzQ5YWQ3NjAyYjp2MQ==">J.P. Freire</a></td><td>(202) 226-4774</td></tr><tr><td> </td><td><a href="https://avanan.url-protection.com/v1/url?o=https%3A//waysandmeansforms.house.gov/components/redirect/r.aspx%3FID%3D493878-3215566&amp;g=YWY3NWE4ZTVkMGRmZTY2OQ==&amp;h=NWIxN2Y3ZDAxOGYwOWM0MWM3NDc3YWNjNmJjNDRhYzllMjgyYTZhNWQ1YjVjMzc4MjA5M2QyZDIxMmMwNGU0Zg==&amp;p=YXAzOnRheGFuYWx5c3RzMzphdmFuYW46b2ZmaWNlMzY1X2VtYWlsc19lbWFpbDozNWFkYmUyZTcwNDFmMDZkZDU5ZDgzMzQ5YWQ3NjAyYjp2MQ==">Jesse Solis</a></td><td> </td></tr></table>     WASHINGTON – The top Republican on the House Ways and Means Committee Kevin Brady (R-TX) and House Republican Leader Kevin McCarthy (R-CA) today released H.R. 11, the Commitment to American GROWTH Act. To rebuild the greatest economy in a generation for our workers, families, and small businesses, this bill locks in key provisions of the successful Trump Tax Cuts to boost American jobs and paychecks, maximizes innovation through research and development, and secures America’s medical supplies. Upon introduction of the legislation, Rep. Brady said:<div class="indented">“House Republicans are committed to rebuilding the greatest economy our country had experienced in decades. President Trump proved that through low taxes and balanced regulation, we can grow jobs and paychecks. Using those same tools, our bill will grow this economy, boost American innovation, and secure our medical supply chain from China.”</div>Leader McCarthy said:<div class="indented">“As our nation continues to make significant strides toward defeating Covid, we must simultaneously work to rebuild the greatest economy of our generation. But building back isn’t enough – we have to implement pro-</div>  <div class="indented">growth policies that will guarantee America’s citizens unprecedented prosperity. That is why last month House Republicans stood up to make our Commitment to America, and to underscore that we will always place the needs of hardworking citizens before all else. As part of this commitment, we need solutions that will invest in America’s small businesses and their employees, and strengthens our supply chain. That is exactly what the Growth Act will deliver. I commend Kevin Brady for his work in drafting this important piece of legislation. These effective proposals will play a vital role in making our country more secure and resilient for decades to come.”</div> <a href="https://avanan.url-protection.com/v1/url?o=https%3A//waysandmeansforms.house.gov/components/redirect/r.aspx%3FID%3D493879-3215566&amp;g=MGQwNzJhNDZjMDdkYjFkZA==&amp;h=YmI0ZGRjMDRkNzk5NDRiZGE4ZDMzMWEyZGVkMDRkYzJmNjU1MWM4ZjU5ZWI5MTM4MjkxMjYxMTFiMGQwYjM3Mg==&amp;p=YXAzOnRheGFuYWx5c3RzMzphdmFuYW46b2ZmaWNlMzY1X2VtYWlsc19lbWFpbDozNWFkYmUyZTcwNDFmMDZkZDU5ZDgzMzQ5YWQ3NjAyYjp2MQ==">CLICK HERE </a>to download a pdf breaking down the provisions in the bill.<a href="https://avanan.url-protection.com/v1/url?o=https%3A//waysandmeansforms.house.gov/components/redirect/r.aspx%3FID%3D493880-3215566&amp;g=MWFjYmNjNTViMGVmOGY4Nw==&amp;h=MTRhYmFkMzBmZmU1ZDk4MjEyYjNjZDM0YmRiM2NmMWQyMmNmZGJiZmRmOTcwNDFjYjJmMjE4ZTdmNWZkZDM3Yw==&amp;p=YXAzOnRheGFuYWx5c3RzMzphdmFuYW46b2ZmaWNlMzY1X2VtYWlsc19lbWFpbDozNWFkYmUyZTcwNDFmMDZkZDU5ZDgzMzQ5YWQ3NjAyYjp2MQ==">CLICK HERE </a>to download the legislative text. Here are the Key Points of HR 11, the “Commitment to American GROWTH Act”: <ul><li>Jobs and Wages. The legislation locks in key provisions from the Trump Tax Cuts to boost American jobs and paychecks.</li><li>Supporting American Job Creators. Our bill encourages investment in research and development so we can continue to make, buy, and sell Made In America products.</li></ul> <ul><li>Medical Independence from China. We cannot count on our foreign competitors to be there for us when the next tragedy strikes. The bill boosts American medical security so that our country can gain medical independence from China while supporting our scientists and researchers.</li></ul> <ul><li>Winning the Innovation Race. Whatever country wins the innovation race wins the future. We encourage new start-ups and technology breakthroughs so the next big invention can be birthed here in America.</li></ul> The Details: Here are the policy specifics for each section of the bill.Part One: Growth in Business Investment to Boost American Wages and Jobs What the bill does: The bill makes permanent the full expensing provision and the earnings before interest, taxes, depreciation, and amortization (EBITDA) standard for business interest limitation provisions in the Tax Cuts and Jobs Act. Why the bill does this : Making these important TCJA provisions permanent will incentivize long-term investments by providing a business with long-term certainty and an opportunity to deduct the costs associated with those investments in the tax year in which they occur. Part Two: Growth in Research in America What the bill does: The bill repeals the R&amp;D Amortization credit, doubles the R&amp;D tax credit, and allows companies to bring back their IP developed offshore without any immediate U.S. tax cost. Why the bill does this: This grows our economy by incentivizing long-term investments. It makes America a more attractive place to grow a business, and it supports high-paying jobs in production and applied research and, ultimately, a higher standard of living for all Americans. Part Three: Growth in America’s Medical Independence What the bill does: The bill lowers the tax rate on the income from the domestic manufacturing and sales of active pharmaceutical ingredients (API) and medical countermeasures while provided a bonus R&amp;D credit for countermeasures. It  creates a 30 percent tax credit for new investments in advanced medical manufacturing equipment or machinery used in the U.S. to manufacture medicines or medical devices. It also provides a refundable R&amp;D for pre-revenue medical research companies – such as small biotech firms on the frontlines of cures research. And it amends the passive loss rules so that investors in certain infectious disease drug development firms can use the tax attributes of these pre-revenue firms to offset their income from other sources. Why the bill does this: Investments in advanced manufacturing will help the United States regain its status as a global leader in manufacturing. It will help retain and create high paying jobs, support domestic innovation, and enhance national security—especially from China—and increase public health. Part Four: Growth in Innovation and Technology Breakthroughs What the bill does: The bill preserves valuable tax attributes of startup businesses from current law limitations when these businesses seek and receive new capital from investors. It also simplifies and expands tax deductions for start-up businesses. Why bill does this: This bill makes it easier for America’s innovators to start new companies – including ones that are working on cures to deadly and rare diseases. It gives American innovators a leg up as they work on research and development of new technological breakthroughs. Want to read more on the fight against Coronavirus? Read our <a href="https://avanan.url-protection.com/v1/url?o=https%3A//waysandmeansforms.house.gov/components/redirect/r.aspx%3FID%3D493881-3215566&amp;g=ZWEyYjU4NDQwOTQwMmMyNw==&amp;h=MjEzYzQzY2QwMjRkMmY1OTViMThhNDEyOGJjNjE3YmJhZGZkM2RmMjMyYjEwZjdlM2YwOTNkZmVlZGYxM2EyNw==&amp;p=YXAzOnRheGFuYWx5c3RzMzphdmFuYW46b2ZmaWNlMzY1X2VtYWlsc19lbWFpbDozNWFkYmUyZTcwNDFmMDZkZDU5ZDgzMzQ5YWQ3NjAyYjp2MQ==">Coronavirus Bulletin</a> <a href="https://avanan.url-protection.com/v1/url?o=https%3A//waysandmeansforms.house.gov/components/redirect/r.aspx%3FID%3D493881-3215566&amp;g=ZWEyYjU4NDQwOTQwMmMyNw==&amp;h=MjEzYzQzY2QwMjRkMmY1OTViMThhNDEyOGJjNjE3YmJhZGZkM2RmMjMyYjEwZjdlM2YwOTNkZmVlZGYxM2EyNw==&amp;p=YXAzOnRheGFuYWx5c3RzMzphdmFuYW46b2ZmaWNlMzY1X2VtYWlsc19lbWFpbDozNWFkYmUyZTcwNDFmMDZkZDU5ZDgzMzQ5YWQ3NjAyYjp2MQ==">here </a>which contains our extensive <a href="https://avanan.url-protection.com/v1/url?o=https%3A//waysandmeansforms.house.gov/components/redirect/r.aspx%3FID%3D493882-3215566&amp;g=MjkyNDlmYTJlZWNiNzQyMg==&amp;h=MmMwMzYxMjA2MmQ4OGRkZmEyODI0M2Y4OTA5MjE4YjQ3MjBhNWYwYjUxYWZhYjAwYzY2MWNiNDlmZTE4MzY3OA==&amp;p=YXAzOnRheGFuYWx5c3RzMzphdmFuYW46b2ZmaWNlMzY1X2VtYWlsc19lbWFpbDozNWFkYmUyZTcwNDFmMDZkZDU5ZDgzMzQ5YWQ3NjAyYjp2MQ==">FAQ about recent federal actions</a>. Was this message forwarded to you? <a href="https://avanan.url-protection.com/v1/url?o=https%3A//waysandmeansforms.house.gov/components/redirect/r.aspx%3FID%3D493883-3215566&amp;g=Y2FiMGQ3ZDEwMzkxMDExMQ==&amp;h=MTdiMmVhZDIyNzU4NzlmOWIyNTc1ZjFmMDIyODgwZWFiZDIwNzExOTM4MjVmY2JkZDY1MzA5YWNjZDk0OWE5Nw==&amp;p=YXAzOnRheGFuYWx5c3RzMzphdmFuYW46b2ZmaWNlMzY1X2VtYWlsc19lbWFpbDozNWFkYmUyZTcwNDFmMDZkZDU5ZDgzMzQ5YWQ3NjAyYjp2MQ==">CLICK HERE </a>to subscribe to our emails. <div class="indented"><div class="indented">###</div></div> <div class="indented"><div class="indented"> COMMITTEE ON WAYS &amp; MEANS REPUBLICANS</div></div>  Title I: Growth in Business Investment to Boost American Wages and Jobs Sec. 101 – Permanent Expensing for Qualified Property Permanently extending full and immediate expensing means: <ul><li>Work that works: Workers get the tools they need to do their work well, resulting in better wages and more opportunity.</li><li>A Plan for Growth: Businesses will have more certainty as they look toward the future and plan for expansion and innovation.</li><li>Ensuring Investing Pays Off: Tax treatment of capital can impact the profitability of investments by changing the cost of capital.</li><li>Boosts Confidence and Reduces Costs: Expensing makes investments less expensive for firms and encourages economic growth activity.</li><li>Make permanent the full expensing provisions in the Tax Cuts and Jobs Act.</li><li>Immediate expensing incentivizes long-term investments by providing a business an opportunity to deduct certain expenses in the tax year in which they occur.</li></ul> Sec. 201 – Permanent EBITDA Standard for Interest Limitation<ul><li>This provision will make investments new production and equipment more affordable for job creators.</li><li>For years after 2021, businesses may continue to determine their interest expense limitation without regard to deductions for depreciation, amortization, or depletion.</li></ul> <ul><li>It encourages businesses to continue investing in growing their operations by maintaining the current amount of interest they can currently deduct in a given year.</li></ul>   Learn more at gop-waysandmeans.house.gov <div class="indented"><div class="indented"> COMMITTEE ON WAYS &amp; MEANS REPUBLICANS</div></div>   <div class="indented">Title II: Growth in Research in America</div>  Sec. 201 – Repeal R&amp;D Amortization <ul><li>Ensures that America continues to be the global leader in innovation by repealing the requirement to amortize R&amp;D costs beginning in 2022.</li><li>Grows our economy by restoring immediate R&amp;D expensing that has long supported jobs and innovation.</li><li>Incentivizes long-term investments in technological breakthroughs by allowing businesses to deduct R&amp;D costs in the tax year that they occur.</li><li>Businesses can continue to expense their R&amp;D costs in the year they are incurred, instead of requiring these costs to be amortized over a 5-year period beginning in 2022.</li></ul>   Sec. 202 – Double R&amp;D Credit <ul><li>A 40 Percent “Traditional” Credit: Double the existing traditional credit rate of 20 percent to 40 percent of the increase in R&amp;D spending for more established companies, which uses a complicated formula to determine the increase in spending.</li></ul> <ul><li>A 28 Percent Alternative Simplified Credit (ASC): Double the existing ASC rate of 14 percent to 28 percent of the increase in R&amp;D spending, which uses a simpler formula to determine the increase in spending.</li></ul> <ul><li>A 14 Percent Credit for Firms with Little Research History: Raise the credit of 6 percent of the R&amp;D spending to a credit of 14 percent of the spending if the company has no history of U.S. research in the past 3 years (but for a prior drafting error this credit would have been 7 percent).</li></ul> <ul><li>Double the Startup Limit to $500,000: Companies with a relatively small amount of income in the past five years can choose to take one of the above credits as a credit against their Social Security payroll taxes, but the amount they may claim is limited to $250,000.</li></ul>     Learn more at gop-waysandmeans.house.gov <div class="indented"><div class="indented"> COMMITTEE ON WAYS &amp; MEANS REPUBLICANS</div></div>   Sec. 203 – Intellectual Property Repatriation <ul><li>American companies can bring back intellectual property (IP) developed offshore without any immediate U.S. tax cost.</li><li>Companies would still have to pay tax if they sold the IP in the future.</li></ul> <ul><li>Could continue to hold and use formerly foreign IP within the United States to support U.S. production and associated research and development.</li><li>Supports high-paying jobs in production and applied research and, ultimately, a higher standard of living for all Americans.</li></ul>  Title III: Growth in America’s Medical Independence Sec. 301 – Domestic Medical and Drug Manufacturing Credit <ul><li>Lowers tax rate on the income from the domestic manufacturing and sales of active pharmaceutical ingredients (API) and medical countermeasures.</li><li>By providing a credit of 10.5 percent of the net income from the sale of these important medical products, this effectively cuts the corporate tax rate from 21 percent in half on eligible profits.</li></ul> <ul><li>The credit is limited by the wages allocable to the domestic production, which supports good high-paying jobs in the United States.</li></ul>  Sec. 302 – Advanced Medical Manufacturing Credit <ul><li>30 percent tax credit for new investments in advanced manufacturing equipment or machinery used in the U.S. to manufacture medicines and medical devices.</li></ul> <ul><li>The credit phases down to 20 percent in 2028, 10 percent in 2029, and phases out in 2030.</li></ul>    Learn more at gop-waysandmeans.house.gov <div class="indented"><div class="indented"> COMMITTEE ON WAYS &amp; MEANS REPUBLICANS</div></div>   Secs. 303 &amp; 304 – Bonus R&amp;D and Refundable R&amp;D for Pre-revenue Companies <ul><li>To provide these pre-revenue companies with additional liquidity, this proposal allows them to calculate their R&amp;D tax credits and receive an annual refund of that amount. So, if a company engaged in R&amp;D activity related to medical countermeasures generates $10 million in R&amp;D tax credits in a year, it would be eligible for a tax refund of $10 million to provide it with additional liquidity to continue its drug development.</li></ul> <ul><li>To incentivize firms engaged in infection disease research, this proposal provides a “bonus R&amp;D credit” of 14 percent of any qualified research costs associated with the development of countermeasures, like infectious disease therapies, on top of the normal R&amp;D credit that would apply to these same costs.</li></ul> Sec. 305 – Medical Research Pass-through Losses <ul><li>Credits</li></ul> <ul><ul><li>Relaxes the passive loss rules for losses and credits attributable to medical countermeasures research of pre-revenue pass-through business.</li><li>This will help these smaller firms raise private funds from more investors at an earlier stage.</li></ul></ul>  Title IV:Growth in Innovation and Technology Breakthroughs Secs. 401 &amp; 402 – Start-up expenditures – Start-up NOL preservation <ul><li>Special tax treatment will help with start-up costs and preserve valuable tax attributes like R&amp;D credits.</li></ul>    Learn more at gop-waysandmeans.house.gov</div>

Brady, McCarthy Announce Innovation Tax Incentives Bill

Brady, McCarthy Announce Innovation Tax Incentives Bill

U.S. House of Representatives

U.S. House Ways and Means Committee

The Commitment to American GROWTH Act would encourage innovation and domestic manufacturing through provisions such as a new credit for medical manufacturing and onshoring tax incentives for intellectual property, House Ways and Means Committee ranking member Kevin Brady, R-Texas, and House Minority Leader Kevin McCarthy, R-Calif., said in an October 9 release.

The Commitment to American GROWTH Act would encourage innovation and domestic manufacturing through provisions such as a new credit for medical manufacturing and onshoring tax incentives for intellectual property, House Ways and Means Committee ranking member Kevin Brady, R-Texas, and House Minority Leader Kevin McCarthy, R-Calif., said in an October 9 release.

The <a href="/lr/resolve//2d1wn">Commitment to American GROWTH Act</a> would encourage innovation and domestic manufacturing through provisions such as a new credit for medical manufacturing and onshoring tax incentives for intellectual property, House Ways and Means Committee ranking member Kevin Brady, R-Texas, and House Minority Leader Kevin McCarthy, R-Calif., said in an October 9 release.

The Commitment to American GROWTH Act would encourage innovation and domestic manufacturing through provisions such as a new credit for medical manufacturing and onshoring tax incentives for intellectual property, House Ways and Means Committee ranking member Kevin Brady, R-Texas, and House Minority Leader Kevin McCarthy, R-Calif., said in an October 9 release. 