For decades the conventional wisdom was that America’s Internal Revenue Code lagged behind the rest of the world in one key area – incentivizing research and development activities. The main reason for the conventional wisdom was that the tax code’s research and development credit wasn’t accessible to majority of taxpayers eligible to take it. Congress took a big step towards remedying that problem when it passed the Startup Innovation Credit Act (SICA) at the end of 2015 and made other important changes through the PATH Act.
There are many reasons the research and development credit will be better and more effective in 2016, but the main reason is that the credit can be applied to more types of businesses taxes than ever before. Contact a Lurie advisor to understand how this credit can help your business develop the next big advancement in the 21st Century.