In Washington DC on March 17th, 2023, a new bipartisan research & development (R&D) bill has been introduced by Senators Maggie Hassan (D-NH) and Todd Young (R-IN).
Senator Hassan was previously responsible for the Inflation Reduction Act, which doubled the amount of R&D tax credits eligible for small businesses and startups to use against payroll tax. The co-sponsors claim “[The bill] will help more startups and businesses invest in research and development, and also ensure that they can fully deduct research and development expenses each year”. This goal is expected to be achieved through the key elements of restoring incentives for long-term R&D investment by ensuring that companies can fully deduct R&D expenses each year and the provisions for small businesses and startups, which include making the R&D tax credit refundable, raising the credit cap over time, and expanding eligibility for the refundable R&D tax credit so that more startups and new businesses can use it.
To read the full bill, click here.
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