# 119-s-1639: American Innovation and Jobs Act

119-s-1639, American Innovation and Jobs Act, is a 119th Congress bill sponsored by Sen. Young, Todd [R-IN] (R-IN); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-s-1639
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-1639
- Congress: 119
- Title: American Innovation and Jobs Act
- Status: introduced
- Introduced: 2025-05-07
- Sponsor: Sen. Young, Todd [R-IN] (R-IN)
- Cosponsors: 35
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**Immediate expensing of research and experimental expenditures** would be restored and strengthened to let businesses deduct R&D costs sooner and speed tax relief for innovation. The bill also creates a fallback amortization path and updates how R&D deductions interact with the research tax credit. - Companies that fund research and development would be able to treat qualifying R&E spending as deductible in the year paid or incurred instead of capitalizing it, with an option to instead amortize certain costs over at least 60 months. - Tax accounting rules would let taxpayers adopt the section 174 method in their first year without Secretary approval or switch later with consent, and the chosen method must remain consistent across years unless officially changed. - Claimants of the research tax credit would see updated rules for how section 41 credits and section 174 deductions interact, including an irrevocable election to accept a reduced credit in certain cases and related basis adjustments. The changes would apply to amounts paid or incurred in taxable years beginning after December 31, 2021.

## Cosponsors (35)

- Sen. Hassan, Margaret Wood [D-NH] (D-NH), 2025-05-07T00:00:00.000Z
- Sen. Lankford, James [R-OK] (R-OK), 2025-05-07T00:00:00.000Z
- Sen. Shaheen, Jeanne [D-NH] (D-NH), 2025-05-07T00:00:00.000Z
- Sen. Daines, Steve [R-MT] (R-MT), 2025-05-07T00:00:00.000Z
- Sen. Warner, Mark R. [D-VA] (D-VA), 2025-05-07T00:00:00.000Z
- Sen. Barrasso, John [R-WY] (R-WY), 2025-05-07T00:00:00.000Z
- Sen. Rosen, Jacky [D-NV] (D-NV), 2025-05-07T00:00:00.000Z
- Sen. Tillis, Thomas [R-NC] (R-NC), 2025-05-07T00:00:00.000Z
- Sen. Peters, Gary C. [D-MI] (D-MI), 2025-05-07T00:00:00.000Z
- Sen. Marshall, Roger [R-KS] (R-KS), 2025-05-07T00:00:00.000Z
- Sen. Padilla, Alex [D-CA] (D-CA), 2025-05-07T00:00:00.000Z
- Sen. Tuberville, Tommy [R-AL] (R-AL), 2025-05-07T00:00:00.000Z
- Sen. Murray, Patty [D-WA] (D-WA), 2025-05-07T00:00:00.000Z
- Sen. Kennedy, John [R-LA] (R-LA), 2025-05-07T00:00:00.000Z
- Sen. Klobuchar, Amy [D-MN] (D-MN), 2025-05-07T00:00:00.000Z
- Sen. Ricketts, Pete [R-NE] (R-NE), 2025-05-07T00:00:00.000Z
- Sen. Kelly, Mark [D-AZ] (D-AZ), 2025-05-07T00:00:00.000Z
- Sen. Britt, Katie Boyd [R-AL] (R-AL), 2025-05-07T00:00:00.000Z
- Sen. Kaine, Tim [D-VA] (D-VA), 2025-05-07T00:00:00.000Z
- Sen. Capito, Shelley Moore [R-WV] (R-WV), 2025-05-07T00:00:00.000Z
- Sen. Cortez Masto, Catherine [D-NV] (D-NV), 2025-05-07T00:00:00.000Z
- Sen. Fischer, Deb [R-NE] (R-NE), 2025-05-07T00:00:00.000Z
- Sen. Baldwin, Tammy [D-WI] (D-WI), 2025-05-07T00:00:00.000Z
- Sen. Moran, Jerry [R-KS] (R-KS), 2025-05-07T00:00:00.000Z
- Sen. Luján, Ben Ray [D-NM] (D-NM), 2025-05-07T00:00:00.000Z
- Sen. Hagerty, Bill [R-TN] (R-TN), 2025-05-07T00:00:00.000Z
- Sen. Coons, Christopher A. [D-DE] (D-DE), 2025-05-07T00:00:00.000Z
- Rep. Mullin, Markwayne [R-OK-2] (R-OK), 2025-05-07T00:00:00.000Z
- Sen. Slotkin, Elissa [D-MI] (D-MI), 2025-05-07T00:00:00.000Z
- Sen. Wicker, Roger F. [R-MS] (R-MS), 2025-05-07T00:00:00.000Z
- Sen. King, Angus S., Jr. [I-ME] (I-ME), 2025-05-07T00:00:00.000Z
- Sen. Budd, Ted [R-NC] (R-NC), 2025-05-07T00:00:00.000Z
- Sen. Ossoff, Jon [D-GA] (D-GA), 2025-05-07T00:00:00.000Z
- Sen. Husted, Jon [R-OH] (R-OH), 2025-05-07T00:00:00.000Z
- Sen. Heinrich, Martin [D-NM] (D-NM), 2025-05-07T00:00:00.000Z

## Provisions PRIA read

- Bigger refundable R&D credit cap: benefit, high. This bill would replace the $250,000 refundable cap on the R&D credit with a rising "applicable amount." The cap would be $500,000 for tax years starting after Dec. 31, 2024, and would increase stepwise to $750,000 for years starting after Dec. 31, 2034. It would also relax startup tests and dollar…
- Higher R&D credit rates for startups: benefit, high. If enacted, qualified small businesses could use higher R&D credit rates. The bill would raise the main alternative rate to 20% (up from 14%) and let certain taxpayers substitute 10% for 6% under an alternate method. Startups could also average research spending by ignoring zero‑research years in t…
- Immediate expensing for R&D costs: benefit, high. This bill would let businesses treat most research and experimental costs as current tax deductions instead of capitalized costs. Taxpayers could also elect to amortize some research costs ratably over at least 60 months, starting when benefits begin. The rule would not apply to exploration costs o…
- R&D credit and deduction rules: mixed, high. If enacted, taxpayers who claim the §41 research credit would not be able to deduct the portion of research costs equal to the credit. If the credit is larger than deductible expenses, the excess would reduce amounts charged to capital accounts. Taxpayers could instead make an irrevocable election…

## Related bills

- 119-s-2296: National Defense Authorization Act for Fiscal Year 2026
- 119-sres-585: A resolution honoring the life, achievements, and legacy of Ben Nighthorse Campbell.
- 119-sres-255: A resolution honoring the life, achievements, and legacy of former United States Senator Christopher "Kit" Bond of Missouri.
- 119-sres-159: A resolution honoring the life of the Honorable John Bennett Johnston, Jr., former Senator for the State of Louisiana.
- 119-sres-148: A resolution honoring the life of the Honorable Alan K. Simpson, former Senator for the State of Wyoming.
- 119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former United States Senator for the State of Kansas.

## Sources
- [119-s-1639 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/1639)

## Related
- [119-s-2296: National Defense Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-2296)
- [119-sres-585: A resolution honoring the life, achievements, and legacy of Ben Nighthorse Camp…](https://policyrisk.com/legislation/119-sres-585)
- [119-sres-255: A resolution honoring the life, achievements, and legacy of former United State…](https://policyrisk.com/legislation/119-sres-255)
- [119-sres-159: A resolution honoring the life of the Honorable John Bennett Johnston, Jr., for…](https://policyrisk.com/legislation/119-sres-159)
- [119-sres-148: A resolution honoring the life of the Honorable Alan K. Simpson, former Senator…](https://policyrisk.com/legislation/119-sres-148)
- [119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former Uni…](https://policyrisk.com/legislation/119-sres-913)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-1639 (as of 2025-12-21).