Federal Agenda 2023
HUNTSVILLE/MADISON COUNTY CHAMBER, ALABAMA
TO THE MEMBERS OF THE ALABAMA CONGRESSIONAL DELEGATION AND THEIR STAFF:
We are grateful to the members of the Alabama Congressional delegation for their leadership on the issues that are critical to our continued exploration of space and the Nation’s defense, especially those affecting the Huntsville/Madison County region. With your support, our region continues to prosper as a science and technology powerhouse.
GAO and DoD IG reviews confirmed that the Air Force decision to locate the permanent U.S. Space Command HQ at Redstone was based on a sound evaluation of the merits of the potential sites. Continued vigilance is required to maintain the integrity of the site selection process
Our federally focused business community functions best with predictable and dependable funding for federal programs. We request that our members vigorously support efforts to pass appropriations bills in a timely manner, thus avoiding the prospect of continuing resolutions which drive up program costs and adversely impact schedule delivery. We encourage Congress to support full funding for our Nation’s space exploration programs and defense programs, especially U.S. Army modernization programs. We urge Congress to continue its efforts to increase, across the board, overall funding for science and technology and advanced research and development for defense, justice, and aerospace programs. Implementing a responsible and transparent method of Congressionally directed appropriations (earmarks) would restore the Constitutional “power of the purse,” bring more lawmakers to the negotiating table, and make federal spending more responsive to the taxpayers’ needs.
During the COVID crisis, federal contractors have had limited access to federal facilities. Rather than idle this critical workforce, Congress incorporated Section 3610 into the CARES Act, allowing for federal agencies to use their funds to reimburse contractors’ employees who are unable to access the worksites and unable to telework during the pandemic. We urge Congress to extend this authorization until such time that all contractors have full access restored to federal facilities.
The Chamber requests the Delegation to indefinitely extend authorities granted by Section 1109 of the 2016 NDAA entitled “Science and Technology Reinvention Laboratory (STRL) Pilot Program on Dynamic Shaping of the Workforce” that are currently set to expire at the end of 2023. These authorities provide STRLs, such as AvMC, with the ability to continually shape their personnel systems to meet their needs in attracting and retaining exceptional talent in today’s competitive economy. Consistent with the Army’s Modernization Strategy and the Secretary of the Army’s priorities, the Congress should stay the course in FY24 funding and supporting the Army’s planned Aviation Modernization programs including Future Armed Reconnaissance Aircraft (FARA), Future Long Range Assault Aircraft (FLRAA), Launched Effects (formerly Air Launched Effects), and Future Tactical UAS.
The continued growth of Huntsville and Madison County necessitates significant investments in our road infrastructure. While the area’s issues with traffic remain far below the levels experienced by other growing cities in the southeastern region, major upgrades to federal routes in the area will be necessary to keep the flow of traffic manageable for local commuters, including the many thousands of workers who drive to Redstone Arsenal each day. Local leaders are entering into an agreement with the Alabama Department of Transportation to expedite the construction of seven major projects, all of which involve or connect to federal highways and interstates. Every effort made by our congressional delegation to help procure funds for these projects will improve the lives of citizens across north Alabama.
This Agenda summarizes the most critical federal issues facing our region. Additional information regarding these issues and a number of other important federal programs and issues that have significant local and national impact is included in an accompanying Issues Book
U.S. HUMAN SPACE FLIGHT & EXPLORATION POLICY
The Marshall Space Flight Center (MSFC) continues to generate significant economic impact to the state, region, and Nation. Programs managed and supported by the Center have national significance and represent the most technically diverse portfolio of any NASA center. MSFC has a recognized 60-year heritage leading complex engineering, human-rated space transportation and propulsion systems, large space structures and systems, and scientific research to make human space exploration a reality. More than 7,000 jobs directly support the mission of MSFC, yielding a statewide economic impact of $4.3B and 24,400 jobs. Just as importantly is the fact that Marshall’s programs impact almost every state in the Nation yielding a nationwide impact of 43,700 jobs and $8.3B to the U.S. economy.
Requested Actions:
SPACE LAUNCH SYSTEM (SLS)
■ SLS successfully launched a human-rated spacecraft to deep space for the first time in 50 years and set a distance record for human exploration in the process. Ensure SLS funding continues at a level to support completion of development of upper stage capable of delivering 43 metric tons to TransLunar Injection (130 MT to low-Earth orbit); support Artemis 2-4 missions with SLS block 1B ready for launch by 2025 and sustain a cadence of once per year thereafter; preserve block 2 by supporting booster obsolescence available by Artemis 9.
■ SLS and Orion represent a multi-year strategic investment of our Nation’s top engineering talent and taxpayer dollars to preserve American leadership in space. Encourage fullest use of SLS and Orion as national assets for deep space exploration plans beyond Low Earth Orbit (LEO) and renew science and national security missions that can benefit from its unparalleled lift and payload capabilities; support development of SLS cargo capabilities to support these unique and enabling capabilities and missions not available anywhere else.
■ Support Artemis and SLS program sustainability and stability in the evolution of SLS from a development program to a more affordable and sustainable long-term Exploration Production and Operations Contract (EPOC), managed by NASA MSFC, to enable more robust exploration, national security, and scientific payload architectures.
HUMAN & CARGO LANDING SYSTEMS (HLS/CLS)
■ Ensure sustained budget for lunar lander systems development and sustained lunar presence by supporting a competitively awarded second HLS provider by mid 2023 with a competition for sustained services by 2028.
■ Ensure HLS synergy by enabling medium to large cargo surface landers under Marshall lander leadership.
■ Ensure technology gap development activities continue under HLS Appendix N.
MOON TO MARS (M2M) SYSTEMS
■ To support SLS sustainability going forward, Marshall workforce will reduce significantly and become available to support NASA’s Moon-to-Mars (M2M) Program. Support Marshall’s role in this program by supporting the following initiatives:
• M2M Habitation and Deep Space Transit Systems Program Office – This program will develop advanced
environmental control and life support systems, scientific payload developments, and foundational in-transit, surface, and mobility habitation systems. Scope also includes advanced in-space propulsion and propellant storage systems.
• M2M Logistics Program Office – Sustainable deep space exploration will require groundbreaking logistics planning and placement of inventory and maintenance for the Artemis campaign. This program will develop systems for surface placement, pre-positioning of assets, integration planning, and return systems.
• Space Nuclear Propulsion Program Office – Support the establishment of the SNP program office at Marshall to include the development of enabling the design and development of nuclear-based transportation (nuclear electric propulsion and nuclear thermal propulsion) for the M2M campaign.
• Technology gap investments – Increase funding in M2M risk reduction technologies such as cryogenic fluid management, in-space manufacturing, advanced and additive manufacturing, nuclear and other in-space transportation systems.
• Mars Ascent Vehicle – Continue to support Marshall’s lead role working on the Mars Sample Return Mission.
SCIENCE
■ Science Operations – Propose MSFC assigned as program lead to integrate all human science operations activity for LEO and Deep Space Science operations. Leverage and expand from Marshall’s current ISS payload operations, science mission operations, and secondary payload operations.
■ Science Missions – Maintain and enhance MSFC’s roles in Earth, Space, and Planetary Science research, applications, and missions such as the Chandra, Fermi, and Lynx Observatories, Imaging X-ray Polarimetry Explorer (IXPE), Solar Cruiser and Mars Ascent Vehicle (MAV); Support robust funding for NASA’s SERVIR, SPoRT, and IMPACT Earth Science programs, providing data for agriculture and disaster mitigation.
INFRASTRUCTURE & INSTITUTIONAL
■ Engineering Science Laboratory (ESF) – Support the repair by replacement and footprint reduction (net reduction of three buildings) of ESF. Everything flying or that will fly goes through this facility and is key to the future Marshall work across all NASA mission directorates.
INTERAGENCY COLLABORATION
■ Enable and encourage more open collaboration between NASA, DoD, and NRO. The best interest of the American people is served through closer cooperation between the Department of Defense, Intelligence Community, and the National Aeronautics and Space Administration to share capabilities, capacities, and resources more effectively and efficiently in executing programs that support national goals and objectives in space. Concerted action is needed across departments and agencies to identify common use areas and implement new joint efforts to field capabilities and complete missions in the most effective way and best interests of the U.S. taxpayer.
U.S. ARMY’S COMBAT CAPABILITIES DEVELOPMENT COMMAND (DEVCOM) AVIATION & MISSILE CENTER (AVMC)
The U.S. Army’s Combat Capabilities Development Command (DEVCOM) Aviation and Missile Center (AvMC) has been a cornerstone of research and development (R&D) on Redstone Arsenal (RSA) for over 60 years. Since inception, the AvMC has evolved into a world-class organization employing approximately 12,000 engineers and scientists housed within laboratories and facilities exceeding 1.9M square feet. AvMC’s three mission priorities are to (1) execute aviation and missile S&T projects to support Army modernization priorities; (2) provide engineering services to enterprise partners leading Army modernization efforts; and (3) support readiness, lifecycle engineering and sustainment efforts with Army enterprise partners. As Redstone Arsenal has grown, so has the need for the valuable expertise and capabilities that reside within the Center. Approximately 84 percent of AvMC funding comes from reimbursable customers to include Intra-service (agreements within the Army); Intra-agency (agreements between DoD components); and Interagency (agreements between a DoD component and a federal agency) customers. The continued support for aviation and missile S&T research is necessary, along with investments in government and industry infrastructure, to develop advanced technologies capable of maturing into the weapons needed to defend against threats from near-peer nations or non-state actors.
National Impact:
Because of their extensive capabilities, the Army and nation rely upon the AvMC as a crucial resource for solving critical engineering challenges. Presently, the AvMC serves as DEVCOM’s lead Center for modernization activities driven by two of the Army’s eight Cross Functional Teams (CFTs), Air and Missile Defense, and Future Vertical Lift. AvMC plays a critical role in support of Long-Range Precision Fires CFT and provides engineering support activities to the remaining CFTs; Advanced Precision Navigation and Timing (A-PNT), Next Generation Combat Vehicle, Soldier Lethality, Synthetic Training Environment and Network. These CFTs employ AvMC’s experienced scientists and engineers, specialized laboratories, and repositories of proven models and performance data to determine maturity, applicability, and robustness of candidate technologies required to address defined operational capability gaps.
AvMC provides a critical enabling role in support of Army weapon system demonstrations to accelerate fielding of critical technologies vs. traditional acquisition approaches. The complexity of Multi-Domain Operations (MDO) requires weapon system capabilities to be addressed as system-of-systems vs. as unique individual platforms. Additionally, enduring aviation and missile platforms must remain relevant to MDO via technology insertion to provide capabilities that complement the transition to modernization programs. Key engineering support efforts ongoing within the AvMC include: configuration and propulsion system analysis for Future Armed Reconnaissance Aircraft (FARA) program, modular open system architecture (MOSA) assessments for Future Long Range Assault Aircraft and Army Aviation’s enduring fleet; Aviation autonomy for contested logistics; Intelligent teaming; Project Convergence demonstrations of reconnaissance, surveillance and target acquisition (RSTA), electronic warfare/ electronic attack (EW/EA), and decoy & detect, identify, located & report (DILR) technologies for Air launched effects (ALE); Future Tactical UAS and Electric VTOL concept evaluations; Development of seeker technology and range extension technologies for Precision Strike Missile (PrSM) In-
crement 2 & Increment 4 Capability; Development of the advanced hypersonic technology implementation plan supporting potential block upgrades of Long Range Hypersonic Weapon (LRHW); Autonomous Multi-domain Launcher (AML); kinetic, directed energy and precision targeting technology for counter UAS; and Next Generation Close Combat Missile development and test.
AvMC serves as a key enabling organization in DoD microelectronic initiative, providing technical subject matter experts to ensure U.S. military has access to trusted and assured microelectronic devices for aviation and missile weapon systems. Finally, AvMC provides critical airworthiness engineers for the Army Airworthiness Authority and assesses all aircraft modifications for the Army to ensure they do not adversely impact flight safety. The insertion of multi-core processors, artificial intelligence and other non-deterministic systems are unique to the advancement of military capabilities which requires the AvMC airworthiness authority to invest in the development of more robust certification methods that are far advanced from the airworthiness challenges currently being addressed by the FAA and other non-DoD airworthiness agencies. The airworthiness authority must keep pace with the model-based system engineering tools and digital engineering practices required to support robust and efficient acquisition processes required for fielded systems.
Community Impact:
Nearly a quarter of Redstone’s 42,000 employees, including engineers and scientists from more than 250 Huntsville companies, work in the AvMC’s three directorates. The Center and its cost-reimbursable model create a win-win scenario. Funding organizations gain access to unparalleled engineering expertise and facilities within AvMC that would be cost-prohibitive to duplicate. The Army and AvMC, in turn, receive funds that sustain the essential laboratories and engineering talent needed to propel Army Futures Command priorities. The financial impact of a healthy and well-resourced AvMC is measured in billions of dollars over the span of DoD budget cycle.
Requested Actions:
■ Continue to support and fund additional missile and aviation S&T research (6.2 basic research, 6.3 applied research) to provide engineering, development and testing of technologies relevant to Long Range Precision Fires, Air and Missile Defense, Future Vertical Lift, and Cyber & Electromagnetic Activities.
■ Increase and support aviation and missile 6.4 funding at a level that allows the Army to transition technologies that will keep the enduring platforms technologically relevant and enable the prototyping necessary to evaluate the future capabilities.
■ Increase and support Army airworthiness 6.6 (D-092) and 6.7 (D-102 engine product improvements) funding lines to enable development of electronic/hybrid aircraft propulsion systems, innovative airworthiness approaches and efficient and effective airworthiness assessments to increase flight safety as new manufacturing techniques (ex. additive manufacturing), non-deterministic systems and digital engineering methods are implemented on enduring and future Army aviation fleets.
■ Increase and support Army manufacturing technology 6.7 research line focusing on advanced ceramics and CMC development and protective technologies to close technological, risk, manufacturing production and affordability gaps related to Army aviation and missile systems.
■ Support efforts to make permanent the authorities provided by Section 1109 of the NDAA for 2016 entitled “Science and Technology Reinvention laboratory (STRL) Pilot Program on Dynamic Shaping of the Workforce.” Authorities granted provide the ability for STRLs such as AvMC to continually shape their personnel systems to meet their needs in attracting and retaining exceptional talent in today’s competitive economy but expire on December 31, 2023.
DIRECTED ENERGY
Continued technological innovations in Directed Energy Weapons (DEW) are of increasing interest to the U.S. Department of Defense (DoD), Department of Justice (DoJ), and Department of Homeland Security (DHS). Most notably, the development of solid-state High Energy Lasers (HEL), advances in High Power Microwaves (HPM) technologies, and advances in the size reduction of weapon system subsystems have transformed DEWs from “tomorrow to today.” The government has invested heavily in DE systems including the Army HEL and HPM, providing new and promising innovations that will keep the U.S. ahead of the power curve on the modern battlefield, whether against near-peer nations or in the fight against non-state actors. This perspective is reinforced by the shift in the National Defense Strategy from counterterrorism to great-power competition with near-peer adversaries. DEWs provide the Warfighter with the ability to engage a target at the speed of light and produce scalable effects from temporary to permanent, thereby reducing the possibility of collateral damage. They also provide a relatively unlimited number of low-cost shots, constrained only by the fuel supply of the platform, which greatly reduce the logistics tail and associated cost.
National Impact:
Hostile events witnessed throughout the world display real-world threats around practically every corner. Just a few examples of such events include attacks across Ukraine from Russia and its allies at tactical to strategic targets, continuous drone and cruise missile attacks across the Middle East, and numerous reconnaissance missions across the world with unmanned aerial systems (UAS). With the proliferation of low-cost yet capable small UAS, the U.S. government and military require sophisticated systems to identify, classify, and potentially destroy any threat with hostile intent. Threats are not limited to just UAS but also include Rocket, Artillery, and Mortars (RAM); rotary- and fixed-wing aircraft; guided missiles; and raid scenarios. DEW can pair well with kinetic interceptors and create a layered defense critical to helping us defend our critical assets, as well as those of our allies. This allows us to reserve kinetic options for higher priority threats. Senior leaders have now deployed DEW systems to accurately counter these threats on foreign battlefields as well as on U.S. soil in a prototype effort.
Community Impact:
The Army and the Joint Services are leveraging commonalities in DEW initiatives to increase combat effectiveness and maximize resources for possible future Programs of Record. As part of this focus, the Army has realigned DEW science and technology efforts in support of the Army’s modernization priorities. The Huntsville-based Army Rapid Capabilities and Critical Technologies Office (RCCTO) has been created with the mission to execute the strategy to deliver prototypes with residual combat capability to operational combat units beginning in 2023. The RCCTO’s DEW focus has expanded beyond their 2021 goals in two capability sets: Directed
Energy-Maneuver Short Range Air Defense (DE M-SHORAD) and Indirect Fire Protection Capability-High Energy Laser (IFPC-HEL) to include palletized DEW variants. They, in conjunction with the Joint Counter UAS Office (JCO), have led the deployment and further development of additional DEW into the Middle East and are planning additional global areas of employment in 2023. Huntsville-based companies are on the forefront in these efforts and are working options today to secure additional manufacturing capabilities and workforce across Alabama. Additionally, RCCTO is exploring existing HPM solutions as part of the Indirect Fire Protection Capability-High Power Microwave (IFPC-HPM) and is partnering with DE counterparts at the Navy and the U.S. Air Force to transition proven HPM technology.
Requested Actions:
■ Increase funding and add POM language to support additional procurement and fielding of DE M-SHORAD, IFPC-HEL, IFPC HPM and palletized variants. Funding today is not sufficient for additional prototypes and sustainment. This support assures the full fielding of the necessary residual combat capability to properly equip all our Services’ units with the tools to win on the battlefields of today and tomorrow, and keep industry primed while Programs of Records are established.
■ Continue to fund and support technology follow-on DE M-SHORAD, IFPC-HEL , and palletized variants in order to capitalize on DEW emerging technologies and capabilities.
■ Increase funding to support development and fielding of containerized DEW solutions in support of Army and Joint C-UAS critical capability gaps.
■ Continue to fund IFPC-HPM efforts in order to serve as a combat multiplier with other DEW capabilities in Army combat formations.
■ Continue to support and fund Army S&T research (6.2 basic research, 6.3 applied research) to provide engineering, development and testing of DE technologies that provide innovative, advanced capability to our military.
■ Increase funding to support development of higher power DEW systems for complex longer range Missile Defense Agency (MDA) missions.
■ Continue support for Recovery of Airbase Denied By Ordnance (RADBO) production in support of the Air Force Explosive Ordnance Disposal units.
HYPERSONIC WEAPONS SYSTEM DEVELOPMENT & DEMONSTRATION (STRIKE & DEFENSE)
National Impact:
Due to demonstrations of Hypersonic Strike Capabilities by nearpeer adversaries, the Department of Defense (DoD) has intensified its focus to ensure the U.S. has both offensive and defensive capabilities to exceed and counter these evolving threats. The Department’s sense of urgency, reflected in the 2018 National Defense Strategy, is demonstrated by numerous efforts to rapidly field hypersonic capability for ground, air, submarine, and ship-launched long-range strike missions. Similarly, MDA has responded to the National Defense Strategy prioritization with significant investment in bolstering the national BMDS to advance U.S. capability against hypersonic threats.
Community Impact:
Key organizations leading hypersonic weapon system development, the Army Rapid Capabilities and Critical Technologies Office (RCCTO), Program Executive Office Missiles and Space (PEO M&S), and MDA are headquartered on Redstone Arsenal. Numerous industry partners with a presence in the Huntsville area are actively involved in technology development efforts related to hypersonic materials, manufacturing capability, ground and flight test infrastructure improvements, program development and technical and acquisition program support to DoD agencies overseeing hypersonic weapon system development and demonstration. These programs provide positive impact to the Huntsville community through the creation of new jobs related to the development, integration, and fielding of Hypersonic weapon systems.
An example is the recent Courtland, Ala. grand opening of Missile Assembly Building 4 (MAB4), a new digital factory for hypersonic strike production. Over the past two years, the Courtland facility has added a total of 117,000 square feet of manufacturing space. With this growth is nearly 300 jobs to Courtland and Huntsville. Additionally, the National Hypersonics Production Facility, located in MidCity District (Huntsville), is the primary production facility of the Common Hypersonic Glide Body. As a result, the Huntsville community is developing a sustained workforce in hypersonics with experience in modeling and simulation, ground test and evaluation, and manufacturing of complex high-performance systems which will provide future offensive and defensive capability to address the evolving adversarial hypersonic threat.
Requested Actions:
■ Increased funding for additional procurement and fielding of Common Hypersonic Glide Bodies. This will support and maintain the hypersonic industrial base.
■ Add additional language and funding to support further affordability and producibility assessments of CHGB.
■ Fully fund Hypersonic Weapon System Development Programs to the FY22 President’s budget level in RDT&E, in all services, for development, testing, and future fielding of Hypersonic Weapons.
■ Continue to fund and support Technology Insertion plans and roadmaps that enable greater capability and disruptive technologies (i.e. non-kinetic effectors) over adversaries.
■ Hypersonic weapons testing infrastructure.
INFRASTRUCTURE – ROADS
The continued growth of Huntsville and Madison County necessitates significant investments in our road infrastructure. While the area’s issues with traffic remain far below the levels experienced by other growing cities in the southeastern region, major upgrades to federal routes in the area will be necessary to keep the flow of traffic manageable for local commuters, including the many thousands of workers who drive to Redstone Arsenal each day. Local leaders are entering into an agreement with the Alabama Department of Transportation to expedite the construction of seven major projects, all of which involve or connect to federal highways and interstates. Every effort made by our congressional delegation to help procure funds for these projects will improve the lives of citizens across north Alabama.
■ Extending I-565 eastward towards Gurley and Scottsboro U.S. Highway 72 East (Corridor V)
■ Overhauling the interchange between I-565 and Memorial Parkway in the heart of Huntsville – I-565 / U.S. Hwy 231 Interchange Modifications
■ Widening Highway 53 to six lanes out of NW Huntsville towards Harvest – Highway 53 Widening (Jeff Road to Old Railroad Bed)
■ Widening Highway 72 West towards and through Madison –U.S. Highway 72 West Widening
■ Widening the last four lane section of I-565 between I-65 and downtown Huntsville – Interstate 565 Widening (CLR to Wall-Triana)
■ Construction of a Redstone Arsenal-focused interchange on I-565 near Resolute Way – Resolute Way Interchange at I-565
■ Creation of a connecting road between I-565 and Redstone Arsenal Gate 10 – Redstone Arsenal East Connector
BIOSCIENCE
Thanks to those working in the biosciences in Alabama and throughout the nation, numerous advances have been made in the areas of human health and agriculture. The progress can be seen in more accurate diagnostics, better patient care, and improved crops and yields. These and many additional outcomes all contribute to improving the human condition.
To continue building on a strong record of scientific and economic success, the bioscience field needs an inspired, diverse, and capable workforce. This is necessary to make discoveries, to start and grow businesses, to rise to meet the challenges of feeding and fueling a growing population, and to find cures of the diseases known today as well as the unknown maladies of tomorrow.
Robust federal funding is vital for discovery-based and translational research conducted through the National Institutes of Health and the departments of Energy, Agriculture, and Defense, among others. Finally, 2023 is a critical year for Alabama’s largest industry: agriculture. As the Farm Bill is crafted, two issues of great importance to be addressed: ensuring economic sustainability for family farms and supporting technology innovation within agriculture.
ARMY AVIATION
The Army Aviation activities on Redstone Arsenal include Army Program Executive Office – Aviation (PEO Aviation), the Army Futures Command Future Vertical Lift Combined Functional Team, and roughly half of the Aviation & Missile Center (formerly AMRDEC). Since 1997 the Army Aviation Research, Development and Acquisition (RD&A) center for rotary wing aviation, Unmanned Aircraft Systems (UAS), and the engineering and logistics support has been at Redstone Arsenal.
The Army’s go-to-war systems in the Enduring Fleet which operates globally today include 4000 +/- aviation platforms such as the Apache Attack Helicopter, Blackhawk Utility Helicopter, Chinook Cargo Helicopter, Army Unmanned Aircraft Systems, Future Vertical Lift Modernized Systems, and Aviation Foreign Military Sales (FMS). All these aviation systems are the responsibility of two-star activities on Redstone Arsenal and will be in operation through 2050 or longer. Over 2000 U.S. manufactured rotary wing aircraft are operated by U.S. allies. The total direct and indirect workforce may be upwards of 20,000 professionals in the greater Huntsville area who contribute to Army Aviation.
SUPPORT THE AMERICAN INNOVATION AND JOBS ACT
National Impact:
Changes made to section 174 of the Internal Revenue Code by the 2017 Tax Cuts and Jobs Act that went into effect in 2022, will potentially have a devastating effect on America’s Small Business innovation ecosystem, and disincentivize many small businesses from performing R&D work. The changes will require businesses to amortize R&D expenses over a five-year period, rather than allowing them to be deducted in the year they were incurred.
These changes will drive the cost of performing R&D much higher, resulting in a larger tax burden for many high-tech companies. This will particularly harm and disincentivize R&D focused small businesses like those participating in the SBIR and STTR programs. These companies often have a much higher percentage of their expenses going to R&D work, and many newer, smaller companies simply don’t have the cash in hand to amortize potentially hundreds of thousands of dollars over five years. Many of the firms hardest hit are early-stage high-growth companies that are not yet making a profit. The move to five-year amortization will further push these companies into negative territory in the near-term, limiting their ability to attract investment and obtain loans. For entities such as
FEDERAL AGENDA ACRONYMS
A-PNT – Advanced Precision Navigation and Timing
ALE – Air Launched Effects
AML – Autonomous Multi-domain Launcher
AMRDEC – U.S. Aviation and Missile Research, Development, and Engineering Center
AvMC – Aviation and Missile Center
BMDS – Ballistic Missile Defense Systems
CFT – Cross Functional Team
CHGB – Common Hypersonic Glide Bodies
CLS – Cargo Landing Systems
DE M-SHORAD – Directed Energy-Maneuver Short Range Air Defense
DEVCOM – U.S. Army’s Combat Capabilities Development Command
DEW – Directed Energy Weapons
DILR – Decoy & Detect, Identify, Located & Report
DHS – U.S. Department of Homeland Security
DoD – U.S. Department of Defense
DoJ – U.S. Department of Justice
EPOC – Exploration Production and Operations Contract
ESF – Engineering Science Facility
EW/EA – electronic warfare/ electronic attack
FAA – Federal Aviation Administration
FARA – Future Armed Reconnaissance Aircraft
FMS – Foreign Military Sales
HEL – High Energy Laser
HLS – Human Landing Systems
HPM – High Power Microwaves
IFPC-HEL – Indirect Fire Protection Capability-High Energy Laser
IFPC-HPM –Indirect Fire Protection Capability-High Power Microwave
ISS – International Space Station
IXPE – Imaging X-ray Polarimetry Explorer
sole proprietorships, partnerships, and sub-s corporations, this tax obligation flows through directly to the individual owners.
The American Innovation and Jobs Act supports innovative businesses and helps create jobs by:
■ Restoring incentives for long-term R&D investment by ensuring that companies can fully deduct R&D expenses each year
■ Raising the cap over time for the refundable R&D tax credit for small businesses and startups
■ Expanding eligibility for the refundable R&D tax credit so that more startups and new businesses can use it
Local Impact: Huntsville ranks in the top 10 communities that receive SBIR and STTR funding. Unless Congress acts swiftly to restore the Sec. 174 deduction, the long-term effects to Huntsville’s innovation economy could be devastating. Fewer small businesses and startups will want to incur the cost of R&D work, leaving it primarily to larger, established businesses who have the cash reserves and profits to amortize their taxes. Many small businesses will simply opt out of innovation programs like SBIR/STTR, resulting in less innovation and a reduction in STEM jobs.
Requested Action: Enact the American Innovation Act.
JCO – Joint Counter UAS Office
LEO – Low Earth Orbit
LRHW –Long Range Hypersonic Weapon
M2M – Moon to Mars program
MAV – Mars Ascent Vehicle
MDA – Missile Defense Agency
MDO – Multi-Domain Operations
MOSA – Modular Open System Architecture
MSFC – NASA’s Marshall Space Flight Center
NASA – National Aeronautics and Space Administration
NRO – National Reconnaissance Office
PEO-AV – Program Executive Office, Aviation
PEO-MS – Program Executive Office, Missiles & Space
PrSM – Precision Strike Missile
R&D – Research & Development
RADBO – Recovery of Airbase Denied By Ordnance
RAM – Rocket, Artillery, Mortar
RCCTO – U.S. Army’s Rapid Capabilities and Critical Technologies Office
RD&A – Army Aviation Research, Development and Acquisition
RSTA – Reconnaissance, Surveillance and Target Acquisition
S&T – Science & Technology
SLS – Space Launch System
SNP – Space Nuclear Propulsion
SPoRT – Short-term Prediction Research and Transition Center
STRL – Science and Technology Reinvention laboratory
UAS – Unmanned Aerial Systems
Sen. Tommy Tuberville (R)
Washington Office: 142 Russell Senate Office Bldg. (202) 224-4124
tuberville.senate.gov
Sen. Katie Britt (R)
Washington Office: Dirksen Senate Office Bldg, Ste B40A (202) 224-5744 britt.senate.gov
Rep. Dale Strong (R)
5th District | Washington Office: 1337 Longworth House Office Bldg. (202) 225-4801
strong.house.gov
Rep. Robert Aderholt (R)
4th District | Washington Office: 1203 Longworth House Office Bldg. (202) 225-4876
aderholt.house.gov
Rep. Jerry Carl (R)
1st District | Washington Office: 1330 Longworth House Office Bldg. (202) 225-4931 carl.house.gov
Rep. Barry Moore (R)
2nd District | Washington Office: 1504 Longworth House Office Bldg. (202) 225-2901
barrymoore.house.gov
Rep. Mike Rogers (R)
3rd District | Washington Office: 2469 Rayburn House Office Bldg. (202) 225-3261
mikerogers.house.gov
Rep. Gary Palmer (R)
6th District | Washington Office: 170 Cannon House Office Bldg. (202) 225-4921 palmer.house.gov
Rep. Terri Sewell (D)
7th District | Washington Office: 1035 Longworth House Office Bldg. (202) 225-2665
sewell.house.gov
225 CHURCH STREET NW, HUNTSVILLE, AL 35801 256-535-2000 HSVCHAMBER.ORG
For more information, please contact:
Mike Ward, CCE, IOM Senior Vice President, Government & Public Affairs
Huntsville/Madison County Chamber 256-535-2030 mward@hsvchamber.org