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Gulf Today
2 days ago
- Business
- Gulf Today
GOP states embrace paid parental leave for teachers
Anna Claire Vollers, Tribune News Service More Republican-led states are giving paid parental leave to public school teachers and other state employees, signaling a broader acceptance of family-friendly workplace policies once championed primarily by Democrats. 'All of these red states, I think we're late to the party,' said South Carolina state Rep. Beth Bernstein, a Democrat who sponsored a bill this year to increase state employees' paid parental leave from six to 12 weeks. It passed the majority-Republican South Carolina House in April with strong bipartisan support. This year, Alabama, Iowa and Mississippi joined 37 other states in granting paid parental leave to thousands of state workers. The trend has gathered steam in recent years. Some experts link it to the cascade of state abortion bans that followed the US Supreme Court's 2022 Dobbs decision, which dismantled the federal right to abortion. Under fire from critics to do more to care for babies once they're born, at least a dozen conservative-led states with abortion bans have since granted or expanded paid parental leave for their state employees. But others say the increasing bipartisan support for measures that help working parents is also a reaction to economic realities. 'What we've seen, especially in more conservative states, is the public sector has experienced a lot of turnover,' said Kameron Dawson, legal director of the Southern Office of A Better Balance, a legal organization focused on workplace rights. 'They're looking for tools to recruit younger employees.' Paid parental leave is the time off granted to workers for the birth or adoption of a baby, to care for a child, or to recover from a stillbirth or miscarriage. Without it, employees are left to cobble together their sick leave and vacation leave — or go unpaid — to stay home with a child and heal. Alabama Republican state Rep. Ginny Shaver watched her daughter, a public school teacher, struggle to get the leave she needed after the births of her children in recent years. 'With her second, she had complications in her pregnancy and used up her [paid vacation and sick] leave before she even had the baby,' Shaver told Stateline. Her daughter contracted COVID-19, and the baby had to spend time in neonatal intensive care. 'It was a very difficult time, and she had to take unpaid leave.' Last year, Shaver and Democratic state Sen. Vivian Figures worked to win approval of a paid parental leave bill for state employees. It failed. But they tried again this year. With the support of Republican Gov. Kay Ivey, the state legislature — which has a Republican supermajority — passed it nearly unanimously. The new law gives female state employees, including teachers, eight weeks of paid parental leave in connection with birth, stillbirth or miscarriage, and gives male employees two weeks. Adoptive parents get eight weeks for one parent and two for the other. Shaver said she thinks the law passed thanks to vocal support from the governor and increased awareness of the issue due to the work she and Figures did in previous sessions. 'And the fact that all of the southeast states around us offered it,' Shaver said. 'We're trying to attract and retain state employees and teachers, and we're in competition with everyone around us, and the private sector as well.' For many Republicans, the workforce development argument for paid leave is a persuasive one. For states such as Alabama and South Carolina that have some of the lowest workforce participation rates in the nation, paid leave can be a tool to keep more people — particularly women — working. And it can be a way to retain educators as many states struggle with teacher shortages in K-12 schools. 'For several years we've seen state legislatures acknowledging the importance of child care to businesses and the economy,' said Feroza Freeland, policy director at the Southern Office of A Better Balance. 'But in the last few years, we've seen a growing recognition that paid leave is another piece of that puzzle.' States have taken up the issue because the federal government has not. The United States is a global outlier; among 38 peer nations, it's the only one that doesn't mandate paid parental leave, according to the Organization of Economic Cooperation and Development. The group comprises 38 democracies with market-based economies. The federal Family and Medical Leave Act, passed in 1993 and extended in 2020, only requires public agencies and companies with at least 50 employees to give up to 12 weeks of unpaid leave for parents of newborns or newly adopted children, or caregivers of sick family members. During his first term, President Donald Trump publicly supported some forms of paid family leave and signed a defense bill that gives 12 weeks of paid parental leave to most federal employees. Paid family leave was a signature issue for his daughter Ivanka Trump, at the time a senior adviser to the president. She even held a paid leave and child care summit at the White House in late 2019. That set the stage for other Republicans to take up the issue more publicly. And after the Dobbs decision, family-friendly policies have increasingly become conservative talking points in states with restrictive abortion laws. After the Mississippi House unanimously passed a paid parental leave bill earlier this year, Republican House Speaker Jason White celebrated the bill as a reflection of Mississippi's status as a ' pro-life state.' In a recent post on X announcing her signing of a new paid parental leave law, Iowa Republican Gov. Kim Reynolds called Iowa 'a pro-family state.' North Carolina was one of the first Southern states to grant paid parental leave to state workers in 2019 when then-Gov. Roy Cooper, a Democrat, signed an executive order. In 2023, several months after the Dobbs decision, the state's majority-Republican legislature extended paid parental leave to public school employees by tacking it onto a law banning most abortions after 12 weeks of pregnancy. Meanwhile, Indiana Republican Gov. Mike Braun signed an executive order in March to add up to eight additional weeks of paid leave for 'childbirth recovery' to the state's existing four weeks of paid parental leave. The new laws won't apply to most residents, because they only cover state employees. But they could have a downstream effect. Shaver, the Alabama lawmaker, said she hopes her state's new law will not only help the state be competitive with the private sector, but also set a precedent for other employers to follow. 'I hope they will see it's in their benefit to offer what they can,' she said. 'It may not be eight or 12 weeks, but even offering a reduced or flexible work schedule can help families.' Just over a quarter of private-sector workers have access to paid family leave through their employer as of March 2023, according the most recent data from the US Department of Labor. Among the lowest-wage earners, that share drops to 6%. State paid leave programs run the gamut in terms of what they offer. While Alabama's new law offers up to eight weeks of leave for all state employees, including teachers, Mississippi's offers six and does not require public schools to offer paid parental leave to their employees.
Yahoo
6 days ago
- Business
- Yahoo
More GOP states embrace paid parental leave for teachers, public employees
A woman holds her newborn baby in her Los Angeles home. More legislatures in Republican-led states are passing paid parental leave for public employees. (Photo by) More Republican-led states are giving paid parental leave to public school teachers and other state employees, signaling a broader acceptance of family-friendly workplace policies once championed primarily by Democrats. 'All of these red states, I think we're late to the party,' said South Carolina state Rep. Beth Bernstein, a Democrat who sponsored a bill this year to increase state employees' paid parental leave from six to 12 weeks. It passed the majority-Republican South Carolina House in April with strong bipartisan support. This year, Alabama, Iowa and Mississippi joined 37 other states in granting paid parental leave to thousands of state workers. The trend has gathered steam in recent years. Some experts link it to the cascade of state abortion bans that followed the U.S. Supreme Court's 2022 Dobbs decision, which dismantled the federal right to abortion. Under fire from critics to do more to care for babies once they're born, at least a dozen conservative-led states with abortion bans have since granted or expanded paid parental leave for their state employees. But others say the increasing bipartisan support for measures that help working parents is also a reaction to economic realities. 'What we've seen, especially in more conservative states, is the public sector has experienced a lot of turnover,' said Kameron Dawson, legal director of the Southern Office of A Better Balance, a legal organization focused on workplace rights. 'They're looking for tools to recruit younger employees.' Paid parental leave is the time off granted to workers for the birth or adoption of a baby, to care for a child, or to recover from a stillbirth or miscarriage. Without it, employees are left to cobble together their sick leave and vacation leave — or go unpaid — to stay home with a child and heal. We're trying to attract and retain state employees and teachers, and we're in competition with everyone around us, and the private sector as well. – Alabama Republican state Rep. Ginny Shaver Alabama Republican state Rep. Ginny Shaver watched her daughter, a public school teacher, struggle to get the leave she needed after the births of her children in recent years. 'With her second, she had complications in her pregnancy and used up her [paid vacation and sick] leave before she even had the baby,' Shaver told Stateline. Her daughter contracted COVID-19, and the baby had to spend time in neonatal intensive care. 'It was a very difficult time, and she had to take unpaid leave.' Last year, Shaver and Democratic state Sen. Vivian Figures worked to win approval of a paid parental leave bill for state employees. It failed. But they tried again this year. With the support of Republican Gov. Kay Ivey, the state legislature — which has a Republican supermajority — passed it nearly unanimously. The new law gives female state employees, including teachers, eight weeks of paid parental leave in connection with birth, stillbirth or miscarriage, and gives male employees two weeks. Adoptive parents get eight weeks for one parent and two for the other. Shaver said she thinks the law passed thanks to vocal support from the governor and increased awareness of the issue due to the work she and Figures did in previous sessions. 'And the fact that all of the southeast states around us offered it,' Shaver said. 'We're trying to attract and retain state employees and teachers, and we're in competition with everyone around us, and the private sector as well.' For many Republicans, the workforce development argument for paid leave is a persuasive one. For states such as Alabama and South Carolina that have some of the lowest workforce participation rates in the nation, paid leave can be a tool to keep more people — particularly women — working. And it can be a way to retain educators as many states struggle with teacher shortages in K-12 schools. 'For several years we've seen state legislatures acknowledging the importance of child care to businesses and the economy,' said Feroza Freeland, policy director at the Southern Office of A Better Balance. 'But in the last few years, we've seen a growing recognition that paid leave is another piece of that puzzle.' New rules protect pregnant workers, but red states sue over abortion provisions States have taken up the issue because the federal government has not. The United States is a global outlier; among 38 peer nations, it's the only one that doesn't mandate paid parental leave, according to the Organization of Economic Cooperation and Development. The group comprises 38 democracies with market-based economies. The federal Family and Medical Leave Act, passed in 1993 and extended in 2020, only requires public agencies and companies with at least 50 employees to give up to 12 weeks of unpaid leave for parents of newborns or newly adopted children, or caregivers of sick family members. During his first term, President Donald Trump publicly supported some forms of paid family leave and signed a defense bill that gives 12 weeks of paid parental leave to most federal employees. Paid family leave was a signature issue for his daughter Ivanka Trump, at the time a senior adviser to the president. She even held a paid leave and child care summit at the White House in late 2019. That set the stage for other Republicans to take up the issue more publicly. And after the Dobbs decision, family-friendly policies have increasingly become conservative talking points in states with restrictive abortion laws. After the Mississippi House unanimously passed a paid parental leave bill earlier this year, Republican House Speaker Jason White celebrated the bill as a reflection of Mississippi's status as a 'pro-life state.' In a post on X this week announcing her signing of a new paid parental leave law, Iowa Republican Gov. Kim Reynolds called Iowa 'a pro-family state.' North Carolina was one of the first Southern states to grant paid parental leave to state workers in 2019 when then-Gov. Roy Cooper, a Democrat, signed an executive order. In 2023, several months after the Dobbs decision, the state's majority-Republican legislature extended paid parental leave to public school employees by tacking it onto a law banning most abortions after 12 weeks of pregnancy. Meanwhile, Indiana Republican Gov. Mike Braun signed an executive order in March to add up to eight additional weeks of paid leave for 'childbirth recovery' to the state's existing four weeks of paid parental leave. The new laws won't apply to most residents, because they only cover state employees. But they could have a downstream effect. Shaver, the Alabama lawmaker, said she hopes her state's new law will not only help the state be competitive with the private sector, but also set a precedent for other employers to follow. 'I hope they will see it's in their benefit to offer what they can,' she said. 'It may not be eight or 12 weeks, but even offering a reduced or flexible work schedule can help families.' Just over a quarter of private-sector workers have access to paid family leave through their employer as of March 2023, according the most recent data from the U.S. Department of Labor. Among the lowest-wage earners, that share drops to 6%. Abortion-ban states pour millions into pregnancy centers with little medical care State paid leave programs run the gamut in terms of what they offer. While Alabama's new law offers up to eight weeks of leave for all state employees, including teachers, Mississippi's offers six and does not require public schools to offer paid parental leave to their employees. Iowa's new law grants four weeks of paid leave for the birth or adoption of a child and one week of paid paternity leave. Tennessee's law, passed in 2023, only offers paid leave to workers in the state's executive and judicial branches. But a few states are already expanding their offerings: Last year, Georgia legislators voted to double paid parental leave from three to six weeks. And some states have gone further than just state employees: 13 states and the District of Columbia have mandated paid family leave for all workers, according to the Bipartisan Policy Center. Most of those states are located in New England or on the West Coast and all are Democratic-led. Ten more offer voluntary paid family leave statewide that's provided through private insurance. Experts say the shift in attitude toward family-friendly policies can also be attributed to a generational shift. 'A lot of younger lawmakers are more willing to champion the issue of paid leave,' said Freeland, of A Better Balance. 'They're understanding it because they're seeing it in their own lives, or seeing friends and family members going through this.' In South Carolina, Bernstein's bill faced some opposition from members of the state's ultra-conservative Freedom Caucus and Family Caucus. Some lawmakers questioned the potential costs of the bill, or criticized it as government overreach. South Carolina Republican state Rep. Josiah Magnuson, a member of the Freedom Caucus, said he believed the bill would be a financial burden on public school districts that could lead to raised taxes. 'You're saying, let's tax the people of South Carolina, most of whom don't get paid parental leave, and give them to state employees who already have six weeks' paid parental leave,' Magnuson told lawmakers in April before the House voted to pass the bill. He also said he doesn't like that the increased paid leave 'puts the foot in the door a little more for the government to be involved in the home.' The opposition frustrated Bernstein, who pointed out that the state's 2022 law that granted six weeks of paid parental leave passed the legislature almost unanimously. This year's bill expanding that leave passed the House but hasn't seen movement in the Senate. It can be picked up again when the legislature returns in January. Other South Carolina Republicans backed the bill, citing their own families' experiences following the birth of their children, reported the South Carolina Daily Gazette. More conservative states are also responding to the needs of 'sandwich generation' employees who may be caring for aging parents as well as children, Freeland said. Earlier this year, Tennessee became the first Southern state to expand its state paid leave policy beyond just parental leave. The state legislature voted almost unanimously to extend its six-week paid leave policy to cover state workers providing end-of-life care to a family member. 'We're seeing a growing recognition that people need support for these types of family or caregiving needs,' said Freeland, 'and that it strengthens the workforce and economy to be able to provide that.' Stateline reporter Anna Claire Vollers can be reached at avollers@ SUPPORT: YOU MAKE OUR WORK POSSIBLE
NBC News
14-05-2025
- Politics
- NBC News
Lawmakers seek investigation into South Carolina's latest firing squad execution
COLUMBIA, S.C. — Two South Carolina legislators have requested an investigation into the state's firing squad execution last month after lawyers for the inmate said his autopsy showed the shots nearly missed his heart and left him in extreme pain for up to a minute. The Democratic and Republican representatives asked the governor, the prison system and leaders in the state House and Senate for an independent and comprehensive review of the April 11 execution of Mikal Mahdi. They also want the firing squad removed from the methods of execution that an inmate can choose until an investigation is complete. Condemned prisoners in South Carolina can also choose lethal injection or the electric chair. Reps. Justin Bamberg and Neal Collins wrote in their letter that the request doesn't diminish the crimes Mahdi was convicted of, nor was it rooted in sympathy for the 42-year-old inmate. Mahdi was put to death for the 2004 shooting of an off-duty police officer during a robbery. 'This independent investigation is to preserve the integrity of South Carolina's justice system and public confidence in our state's administration of executions under the rule of law,' they wrote. Bamberg, a Democrat, and Collins, a Republican, are deskmates in the South Carolina House. Prison officials say the execution was conducted properly Prison officials said they thought the execution was properly conducted. House and Senate leaders did not respond. Republican Gov. Henry McMaster said he sees no need to investigate. 'The governor has high confidence in the leadership of the Department of Corrections. He believes the sentence of death for Mr. Mahdi was properly and lawfully carried out,' spokesman Brandon Charochak wrote in an email. Even without an investigation, what happened at Mahdi's execution may get hashed out in court soon. A possible execution date for Stephen Stanko, who has two death sentences for murders in Horry County and Georgetown County, could be set as soon as Friday. He would have to decide two weeks later how he wants to die. Mahdi had admitted he killed Orangeburg Public Safety officer James Myers in 2004, shooting him at least eight times before burning his body. Myers' wife found him in the couple's Calhoun County shed, which had been the backdrop to their wedding 15 months earlier. Just one autopsy photo The autopsy conducted after Mahdi's execution raised several questions that the lawmakers repeated in their letter. The only photo of Mahdi's body taken at his autopsy showed just two distinct wounds in his torso. A pathologist who reviewed the results for Mahdi's lawyers said that showed one of the three shots from the three prison employee volunteers on the firing squad missed. The pathologist who conducted the autopsy concluded that two bullets entered the body in the same place after consulting with an unnamed prison official who said that had happened before in training. Prison officials said all three guns fired and no bullets or fragments were found in the death chamber. 'Both bullets traveling on the exact same trajectory both before and after hitting a target through the same exact entrance point is contrary to the law of physics,' Bamberg and Collins wrote. Shots appeared to have hit low In the state's first firing squad execution of Brad Sigmon on March 7, three distinct wounds were found on his chest, and his heart was heavily damaged, according to his autopsy report. The shots barely hit one of the four chambers of Mahdi's heart and extensively damaged his liver and lungs. Where it likely takes someone 15 seconds to lose consciousness when the heart is directly hit, Mahdi likely was aware and in extreme pain for 30 seconds to a minute, said Dr. Jonathan Arden, the pathologist who reviewed the autopsy for the inmate's lawyers. Witnesses said Mahdi cried out as the shots were fired at his execution, groaned again some 45 seconds later and let out one last low moan just before he appeared to draw his final breath at 75 seconds. Little documentation at the autopsy Bamberg and Collins said Mahdi's autopsy itself was problematic. The official autopsy did not include X-rays to allow the results to be independently verified; only one photo was taken of Mahdi's body, and no close-ups of the wounds; and his clothing was not examined to determine where the target was placed and how it aligned with the damage the bullets caused to his shirt and his body. 'I think it is really stretching the truth to say that Mikal Mahdi had an autopsy. I think most pathologists would say that he had 'an external examination of the body,'' said Jonathan Groner, an expert in lethal injection and other capital punishments and a surgeon who teaches at Ohio State University. Sigmon's autopsy included X-rays, several photos and a cursory examination of his clothes Prison officials have used the same company, Professional Pathology Services, for all its execution autopsies, Corrections Department spokeswoman Chrysti Shain said. They provide no instructions or restrictions to the firm for any autopsy, she said. The pathologist who conducted the autopsy refused to answer questions from The Associated Press. Bamberg and Collins also want the state to allow at least one legislator to attend executions as witnesses.
13-05-2025
- Politics
Lawmakers seek investigation into South Carolina's firing squad execution
COLUMBIA, S.C. -- Two South Carolina legislators have requested an investigation into the state's firing squad execution last month after lawyers for the inmate said his autopsy showed the shots nearly missed his heart and left him in extreme pain for up to a minute. The Democratic and Republican representatives asked the governor, the prison system and leaders in the state House and Senate for an independent and comprehensive review of the April 11 execution of Mikal Mahdi. They also want the firing squad removed from the methods of execution that an inmate can choose until an investigation is complete. Condemned prisoners in South Carolina can also choose lethal injection or the electric chair. Reps. Justin Bamberg and Neal Collins wrote in their letter that the request doesn't diminish the crimes Mahdi was convicted of, nor was it rooted in sympathy for the 42-year-old inmate. Mahdi was put to death for the 2004 shooting of an off-duty police officer during a robbery. 'This independent investigation is to preserve the integrity of South Carolina's justice system and public confidence in our state's administration of executions under the rule of law,' they wrote. Bamberg, a Democrat, and Coillins, a Republican, are deskmates in the South Carolina House. Prison officials said they thought the execution was properly conducted. House and Senate leaders did not respond. Republican Gov. Henry McMaster said he sees no need to investigate. 'The governor has high confidence in the leadership of the Department of Corrections. He believes the sentence of death for Mr. Mahdi was properly and lawfully carried out," wrote spokesman Brandon Charochak in an email. Even without an investigation, what happened at Mahdi's execution may get hashed out in court soon. A possible execution date for Stephen Stanko, who has two death sentences for murders in Horry County and Georgetown County, could be set as soon as Friday. He would have to decide two weeks later how he wants to die. Mahdi had admitted he killed Orangeburg Public Safety officer James Myers in 2004, shooting him at least eight times before burning his body. Myers' wife found him in the couple's Calhoun County shed, which had been the backdrop to their wedding 15 months earlier. The autopsy conducted after Mahdi's execution raised several questions that the lawmakers repeated in their letter. The only photo of Mahdi's body taken at his autopsy showed just two distinct wounds in his torso. A pathologist who reviewed the results for Mahdi's lawyers said that showed one of the three shots from the three prison employee volunteers on the firing squad missed. The pathologist who conducted the autopsy concluded that two bullets entered the body in the same place after consulting with an unnamed prison official who said that had happened before in training. Prison officials said all three guns fired and no bullets or fragments were found in the death chamber. 'Both bullets traveling on the exact same trajectory both before and after hitting a target through the same exact entrance point is contrary to the law of physics,' Bamberg and Collins wrote. In the state's first firing squad execution of Brad Sigmon on March 7, three distinct wounds were found on his chest and his heart was heavily damaged, according to his autopsy report. The shots barely hit one of the four chambers of Mahdi's heart and extensively damaged his liver and lungs. Where it likely takes someone 15 seconds to lose consciousness when the heart is directly hit, Mahdi likely was aware and in extreme pain for 30 seconds to a minute, said Dr. Jonathan Arden, the pathologist who reviewed the autopsy for the inmate's lawyers. Witnesses said Mahdi cried out as the shots were fired at his execution, groaned again some 45 seconds later and let out one last low moan just before he appeared to draw his final breath at 75 seconds. Bamberg and Collins said Mahdi's autopsy itself was problematic. The official autopsy did not include X-rays to allow the results to be independently verified; only one photo was taken of Mahdi's body, and no close-ups of the wounds; and his clothing was not examined to determine where the target was placed and how it aligned with the damage the bullets caused to his shirt and his body. 'I think it is really stretching the truth to say that Mikal Mahdi had an autopsy. I think most pathologists would say that he had 'an external examination of the body,'' said Jonathan Groner, an expert in lethal injection and other capital punishments and a surgeon who teaches at Ohio State University. Sigmon's autopsy included X-rays, several photos and a cursory examination of his clothes Prison officials have used the same company, Professional Pathology Services, for all its execution autopsies, Corrections Department spokeswoman Chrysti Shain said. They provide no instructions or restrictions to the firm for any autopsy, she said. The pathologist who conducted the autopsy refused to answer questions from The Associated Press. Bamberg and Collins also want the state to allow at least one legislator to attend executions as witnesses. State law is specific about who can be in the small witness room: prison staff, two representatives for the inmate, three relatives of the victim, a law enforcement officer, the prosecutor where the crime took place, and three members of the media.
Forbes
08-05-2025
- Business
- Forbes
R&D Tax Credit Boost Shows Texas Is Not Resting On Low-Tax Laurels
Texas state capitol building in Austin getty Thanks to a flurry of legislative activity that took place in April, Tax Day could be less burdensome in the future for residents of a number of states. On April 28, Montana Governor Greg Gianforte (R) signed into law the largest income tax cut in his state's history. Just over a week later on May 6, the South Carolina House passed a bill that would put the state on track to having a flat 1.99% income tax rate, down from a 6.2% top rate today. That move in South Carolina came three weeks after the North Carolina Senate passed a budget that would cut the state's 4.25% flat tax to 1.99% in the coming years if revenue triggers are met. Three days before the North Carolina Senate passed that income tax-cutting budget, the Oklahoma Senate gave final approval to legislation that will gradually phase out the state income tax. In this era of heightened state tax competition, lawmakers in Texas recognize it's unwise for even a no-income-tax state to rest on its laurels. They demonstrated as much last week with the Texas Senate's unanimous passage of Senate Bill 2206, legislation that would both extend and strengthen the state's research & development tax credit. Senator Paul Bettencourt (R), sponsor of SB 2206, calls it a 'huge win for innovation.' 'We're increasing the R&D franchise tax credit from 5% up to 8.722% — and even higher to 10.903% for R&D with Texas universities and colleges,' Senator Bettencourt posted to X following the Texas Senate's 31-0 vote in favor of SB 2206. The bill now awaits consideration in the Texas House. Representative Charlie Geren (R) is sponsor of HB 4393, the House companion to SB 2206. 'For every $1 in R&D incentive, Texas gains $12.47 in Gross State Product over 20 years,' Senator Bettencourt added. 'This bill creates 6,662 new jobs annually, $445M in labor income, and $748M in GSP growth every year. SB 2206 ensures Texas remains a national leader in research, innovation, and job creation — making sure our economy keeps pace with the demands of the 21st-century.' 'Research and development (R&D) activities of private businesses, universities and the government are important for increasing innovation,' noted John Diamond, the director of the Center for Public Finance at Rice University's Baker Institute for Public Policy, in a 2024 paper. 'Sustained increases in economic growth and the standard of living will be primarily driven by technological innovation in the near future, making it imperative that Texas act to increase R&D investments.' Diamond points out that one way to do this is by 'extending and increasing the R&D tax credit,' which is what will happen if the Texas House passes HB 4393. 'R&D is so important to a healthy economy,' Jennifer Rabb, president of the Texas Taxpayers and Research Association, told the Austin American-Statesman . 'And without an extension of the credit, companies are going to choose to go elsewhere for those projects.' 'Texas' credit is on the low end of the spectrum for R&D tax incentives, with countries like China offering a 'super deduction' of 200% and states like California offering a 15% tax credit on qualified research expenditures and an extra 24% of research payments to public universities and their affiliate hospitals or cancer research centers,' the Statesman reported after the April 10 Senate Finance Committee hearing on SB 2206. 'Many other states, like Michigan and Arizona, offer 10%.' 'For those businesses, small entrepreneurial businesses that are startups that don't have income coming in, they would be able to take a credit off of their sales tax expenditures to use it or carry forward the credit to a time when they have profits coming in,' Glen Hammer, CEO of Texas Association of Business, told the Statesman , adding 'it's something that's available to all innovative companies in the state of Texas, regardless of their size.' The push to extend and boost the R&D tax credit in Texas coincides with the effort on Capitol Hill to reinstate full year one business expensing for R&D costs. The enactment of SB 2206/HB 4393 in Texas 'needs to be complemented with Congress ending the tax code's bias against research spending,' says Ryan Ellis, president of the Center for a Free Economy. 'For the whole history of the tax code, research expenses (which consist mostly of the wages paid to researchers) were deductible,' adds Ellis, an IRS-enrolled agent who also runs a tax preparation firm. 'As of 2023, research expenses incurred in one year must be slowly deducted. Congress is working as we speak to restore full research expensing, the neutral and correct tax policy which is also very pro-growth.' 'The United States treats research and development poorly compared to the rest of the world,' the Tax Foundation noted in an October 2024 paper. 'Historically, the US allowed companies to fully deduct R&D costs, but since 2022, companies must deduct R&D expenses across 5 years or 15 years. In real terms, the delay means companies only deduct around 89 percent of R&D costs, creating a tax penalty.' Researchers at the Tax Foundation, as illustrated by the below chart, have concluded that improving the tax treatment of R&D, in particular restoring full expensing of R&D costs, is among the most effective ways to promote economic growth. Percentage Change in the level of Long-Run GDP per Billion of Annual Conventional Revenue Cost Tax Foundation Congressional leaders are aiming to send a bill to the President's desk by this summer that would prevent the personal income tax cuts enacted in 2017 from expiring, while restoring full expensing of R&D, along with full expensing of other business costs. The Texas House Ways & Means Committee, meanwhile, will take up HB 4393 during a hearing on May 12. This eighty-ninth regular session of the Texas Legislature will conclude on June 2.
