Legislation would allow for immediate R&D expensing by travel tech companies, large and small
Tuesday, March 25, 2025 — The Travel Technology Association announced its support for H.R. 1990, the American Innovation and R&D Competitiveness Act of 2025, which was recently introduced in the U.S. House of Representatives by Congressmen Ron Estes (R-KS) and John Larson (D-CT). This bipartisan bill aims to restore the immediate deductibility of research and experimental expenditures, encouraging innovation and bolstering the U.S. economy.
“The travel tech industry consists of large and small innovators. The restoration of the immediate deductibility of research and development costs will directly support their efforts to improve the travel experience,” said Laura Chadwick, president & CEO of the Travel Technology Association.
Prior to 2022, businesses could fully deduct R&D expenses in the year they were incurred. However, changes implemented by the Tax Cuts and Jobs Act of 2017 require these expenses to be amortized over five years, increasing the after-tax cost of R&D and potentially discouraging investment in innovation. H.R. 1990 seeks to reverse this change, allowing for immediate expensing of R&D costs and supporting companies in investing more heavily in research and development.
Travel Tech has issued an “Action Alert” and is asking industry members to send their own letter of support to their members of Congress through Travel Tech’s Policy Action Center.
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The Travel Technology Association (Travel Tech) empowers traveler choice by advocating for public policy that promotes marketplace transparency and competition. Travel Tech represents travel technology innovators ranging from dynamic startups, small, and midsize businesses to leading online travel agencies, metasearch engines, short-term rental platforms, global distribution systems, and travel management companies.
To schedule an interview with a Travel Tech spokesperson, contact Bradford Williamson of Glen Echo Group at 202.870.3234 or bwilliamson@glenechogroup.com.
