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Tomeka B. Scales, Ph.D.
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Professional Services Council Urges Senate to Pass Tax Relief for American Families and Workers Act

Arlington, Va. (April 16, 2024) -- In a letter to Congressional leaders, David J. Berteau, President & CEO of the Professional Services Council (PSC), called for swift passage of the Tax Relief for American Families and Workers Act.

The letter focused on restoring the research and development (R&D) tax credit, a key provision of the House-passed bill. Berteau underscored the significant but often overlooked impact of R&D investment in supporting the critical role of contractors in providing mission-essential services to the federal government.

“The bill as a whole has broad benefits for society and the overall economy and merits bipartisan support in the Senate, as it had in the House of Representatives. PSC calls attention to one specific provision, the R&D tax credit, with its unique benefits for the federal government itself,” said Berteau. 

He noted that, prior to the lapse of the provision in 2022, contractors would apply fully expensed R&D investments to the development of innovation and improvements, then include those innovations in their proprietary bids on government contracts. Berteau concluded, "These R&D investments generate innovation that saves the federal government time and money, without the agency spending any additional appropriated funds."

With current tax law limiting the benefit to 20 per cent of R&D expenditures, contractors cannot afford such investments on bids they may not win.  This results in missed opportunities for cost-saving innovations within federal agencies. Berteau urged Congress to restore the benefits to the federal government of full expensing of covered R&D expenditures by passing the Tax Relief for American Families and Workers Act.

Download pdf of this press release here.

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PSC is the voice of the federal government services and solutions industry, with more than 400 small, medium, and large member companies that support federal agency missions and functions. 
         
Learn more at: www.pscouncil.org