One of the greatest pleasures as legislators is seeing the hard-earned money of Tennesseans staying in their pockets. Every year, our mission is to not only try to not raise taxes but actively seek ways in which we can lower them. House Bill 2144 reflects that mission. This bill permits businesses to deduct related research and development expenses when filing taxes. The soon-expiring Tax Cuts and Jobs Act (TCJA) reduced tax rates for businesses and individuals while increasing standard deductions and family tax credits. By severing Tennessee’s tax code from the federal code’s extended research and development amortization schedule. HB2144 allows companies doing business in Tennessee to continue deducting those expenses from their state tax liability. This legislation was crucial for companies and business owners in our state. A company researches to better serve its consumers and to create a prosperous environment for other businesses.
“This bill is a tax cut that will make a difference in every single district and make sure our businesses can be more competitive than any throughout the United States,” House Majority Leader William Lamberth. Tennessee has been a model state and economic leader in our nation, and with the current economic growth in our state, will continue to lead the nation.