DEAR EDITOR:

The U.S. Senate recently failed to advance a significant tax relief measure aimed at restoring the immediate expensing of domestic research costs, a key provision that had broad support in the House. In August, the procedural vote ended 12 votes short of the required 60 to move forward.

In September, the Regional Chamber met with U.S. Reps. Dave Joyce and Mike Rulli and several major local employers and tax pros from HBK to discuss ways to rekindle the conversation in Washington. We’re happy about the support from our local congressmen, but convincing their colleagues in the Senate will remain challenging.

We’re talking about Section 174 of the Internal Revenue Code. Currently, businesses must amortize domestic research and experimentation (R&E) expenses over multiple years. This rule has strained cash flows and financial planning since it was implemented in 2022. The preferred fix is to allow businesses to immediately deduct these costs through 2025. This would provide significant financial relief and encourage further investment in innovation.

We care about this in the Mahoning Valley because we are a leader in manufacturing innovation. We also have successful business incubators helping local startups. Many of our most recognized employers, big and small, have been hurt–either by seeing their tax bills increase or by curtailing important research that would help their competitiveness. They continue to face higher short-term tax bills, impacting their cash flow and ability to invest in future projects.

We know meaningful progress is highly unlikely soon as we proceed through the political campaign season. But we will continue working with HBK’s manufacturing division, our state’s federal delegation and our partner chambers of commerce to eventually bring relief.

GUY COVIELLO

President & CEO,

Regional Chamber