Startups with qualifying research expenses have for the first time an additional option whereby they can choose to apply up to $250,000 of its research credit against its payroll tax liability. This new option is available to any eligible small business filing its 2016 federal income tax return this tax season.

If, somehow, such a small business failed to choose this option while filing their 2016 Tax return, and still wishes to do so, it can still make the election by filing an amended return by Dec. 31, 2017. This new option was introduced through the PATH Act enacted in 2015.

Read More

U.S. Senator Chris Coons (D-Del.), leader of the Senate’s Manufacturing Jobs for America initiative, and Senator Pat Roberts (R-Kan.) introduced bipartisan legislation on January 14th to enhance incentives for private firms to invest in research and development within the United States and its possessions (e.g., Puerto Rico and Guam). The Innovators Job Creation Act would help startups and other small companies take full advantage of the Research and Experimentation Tax Credit (hereinafter “RTC”) pursuant to I.R.C. § 41 that are currently unavailable to them based upon the current statute.

“Research and development is the lifeblood of great American companies, turning ideas into innovations that grow businesses and create good manufacturing jobs here at home,” U.S. Senator Chris Coons (D-Del.) said. “If we want to strengthen our Read More