CREATE JOBS Act Cost Recovery and Expensing Acceleration to Transform the Economy and Jumpstart Opportunities for Businesses and Startups Act
HB3967, the CREATE JOBS Act, would make several business tax provisions more favorable by accelerating deductions for investment and research costs. First, it would permanently extend 100 percent bonus depreciation for qualified property, allowing businesses to immediately deduct the full cost of eligible investments rather than depreciating them over time. It also revises rules for certain plant-related property and related tax provisions to conform to that permanent full-expensing approach.
The bill would also create a new “neutral cost recovery” adjustment for residential rental property and nonresidential real property. Under that framework, depreciation deductions for those properties would be adjusted over time by a formula tied to inflation and a 3 percent annual factor, with special rules for existing property, an election to opt out, and corresponding changes to minimum tax treatment. In addition, the bill would restore immediate expensing for research and experimental expenditures by repealing the current amortization requirement and returning to a deduction-based treatment for R&E costs, with conforming changes to the research credit and related tax rules.
The bill would amend multiple sections of the Internal Revenue Code, including sections 168, 174, 41, 56, 280C, 460, and related conforming provisions. Its practical effect would be to reduce the timing burden of capital recovery for businesses by allowing faster deductions for equipment, certain property, and research spending, while also changing how depreciation is calculated for rental and commercial real estate. It would affect corporations, pass-through entities, real estate owners, startups, and other businesses that invest in qualified property or incur research and development expenses.
No committee transcript or vote record was provided, so there is no documented floor or committee debate to gauge member sentiment directly. Based on the bill’s title and structure, the measure is clearly pro-business and pro-investment, aimed at encouraging capital formation, startup activity, and domestic research spending. The overall framing suggests support from lawmakers favoring tax relief and economic growth incentives, but the absence of recorded discussion means there is no formal evidence of bipartisan agreement or opposition in the supplied materials.
The main policy tensions likely involve the revenue cost of permanent full expensing and restored R&E expensing, as well as the distributional effects of accelerating deductions toward businesses with significant capital or research outlays. The new neutral cost recovery system for real property may also be controversial because it changes depreciation timing for landlords and commercial property owners and introduces a new formula tied to GDP deflators and a 3 percent factor. Potential critics could argue the bill favors larger firms or increases federal deficits, while supporters would emphasize investment incentives, simplicity, and competitiveness.