As part of broader tax legislation that was signed into law this past December, the R&D Tax Credit was made permanent and modified to grant startups and a larger number of small businesses access to the credit. As reported by The Hill’s Naomi Jagoda in her article “Senators ask IRS to issue guidance to help startups,” senators Chris Coons (D-DE), Pat Roberts (R-KS) and Charles Schumer (D-NY) reached out to the IRS asking for additional guidance for startups and small businesses, specifically requesting that the Service not exclude such companies from the credit if they had received grants from governments or nonprofits in the past. The senators also requested that the IRS reduce its recordkeeping burdens on these companies and asked the organization to “conduct meaningful outreach” to educate small businesses and startups about the R&D credit.
In the piece, Zerbe came out in support of the senators’ bipartisan efforts:
Dean Zerbe, National Managing Director of alliantgroup and former Senior Counsel to the Senate Finance Committee, praised the senators for “working hard to ensure that this new provision is a success.”
“The IRS needs to recognize the importance of educating business owners as to this new R&D provision,” Zerbe said. “Study after study has shown that the key to new job creation is encouraging and supporting new businesses—helping ensure the success of the startup R&D Tax Credit will be an important part of creating new jobs.”
Contact us today for more information on the modifications to the R&D Tax Credit and how these proposed guidance changes could help your business.
About the Author
Dean Zerbe is alliantgroup’s National Managing Director based in the firm’s Washington, D.C. office. Prior to joining alliantgroup, Zerbe was Senior Counsel and Tax Counsel to the U.S. Senate Committee on Finance. He worked closely with then-Chairman of the Finance Committee, Senator Charles Grassley, on tax legislation. During his tenure on the Finance Committee, Zerbe was intimately involved with nearly every major piece of tax legislation that was signed into law, including the 2001 and 2003 tax reconciliation bills, the JOBS bill in 2004 (corporate tax reform) and the Pension Protection Act.