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By Neo.Tax Team
2 minute read
With backing from the National Association of Manufacturers, GOP Representative Jackie Walorski of Indiana put forward an amendment to the tax code that could mean serious increases in research and development tax credits for businesses.
Over the years, the R&D Tax Credit has gone through many changes. In 2015, the credit became permanent thanks to the PATH Act. The act also expanded R&D tax credit access to small and medium businesses, as well as startups.
Currently, Rep. Walorski is proposing H.R. 8253, better known as the FIRST Act or the Fostering Innovation and Research to Strengthen Tomorrow Act. This amendment would increase the amount of R&D spending that businesses can claim.
Double the credit, double the fun… that should be Rep. Walorski’s slogan.
“Doubling the R&D tax credit will encourage American companies — especially small businesses and startups — to invest in innovation that will unleash economic growth and prosperity,” Walorski said in response to the proposed changes. He further affirmed, “the FIRST Act will take a strategic step toward ensuring that America will lead the world in scientific discoveries, technological breakthroughs, and cutting-edge manufacturing for the 21st century.”
The proposed amendment has strong backing from the National Association of Manufacturers, as acknowledged by their senior director of tax policy, David Eiselberg, “the manufacturing industry is the backbone of American research and development, and this bill would support jobs, boost innovation and help ensure America’s future competitiveness.”
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