The Senate is due to vote on the “Extenders Bill” which would provide continuing support for specific programs that expired at the beginning of the year, including the IRC Section 41 Research Credit. As of 10am EST on Monday, December 15, 2014, the vote was anticipated on or before Thursday, December 18th. The enabling house bill is H.R. 5771. Meanwhile, the Senate will be busy with other year-end business, including votes on several executive branch appointments.
The federal Research Credit (formally known under IRC Section 41 as the “Investment Tax Credit for Increasing Research Activities”) is intended to encourage companies to keep engineering and manufacturing jobs here in the US. It enjoys broad bipartisan support and has been in place almost continuously since 1981, when it was codified as IRC section 44f. This program has led to many billions of dollars in net research investment
The credit provides a dollar-for-dollar reduction in taxes owed for companies that try to expand their technological capabilities. Qualified efforts include traditional new product development as well as systematic process improvements and related equipment development, including tooling, fixtures and related experimentation.
It is our firm belief that this important incentive program should be extended and made permanent. We believe that a strong commitment to research and development is of strategic importance to the US, and that our best approach is to encourage companies to hire here, to train here, and to encourage our best and brightest to stay here.
So what does this mean to you?
For decades, skilled jobs have been shipped overseas. We often hear that making goods here in the US would make them too expensive. The truth is that the extra cost for most items is *less* than one tenth of one dollar per unit for t-shirts and less than ten dollars for refrigerators. It simply isn’t true that US labor is too expensive. The federal research credit is our best hope for keeping engineering and manufacturing and software jobs here in the United States.
We are closely monitoring the events in the Senate and will provide more news when it becomes available.
Don't leave money laying on the table!
Don't believe the myths - no business is too small to claim their portion of research and development tax credits. We can help you see if money is owed to you at no obligation to you. Schedule your complementary consultation today.