Senate Bill Would Increase Tax Credits for U.S.-Based Research and Development

Senate Bill Would Increase Tax Credits for U.S.-Based Research and Development

Posted by Jeffrey Feingold on 06.08.17

In a show of bipartisanship, U.S. Sens. Chris Coons (D-DE) and Pat Roberts (R-KS) introduced the Invent and Manufacture in America Act on June 6, 2017. The bill is intended to further enhance the research and development (R&D) tax credit for those companies that conduct R&D in the U.S. and for those who manufacture products as a result of R&D that took place in the U.S.

According to a news release issued by Coons, “Virtually every American now has a smartphone, but most of the details of the smartphones—the operating systems—are developed through American R&D, but virtually every one of them is manufactured outside of the United States. This is a step toward more ‘Made in America.’”

The bipartisan measure would enhance the value of the R&D tax credit by up to 25 percent for companies that perform the majority of their manufacturing in the U.S. The enhanced value would be graduated so that the credit rate would increase as the percentage of a company’s domestic manufacturing increases, according to the release.

“Our legislation would increase cash flow for small businesses and start-ups involved in R&D intensive activities by reducing past, current and future tax liabilities leading to permanent tax savings,” said Roberts. “The new technologies, products, and lower prices generated by investments in R&D create new jobs, raise wages, and create new demand for goods and services.”

Tax Point Advisors will provide updates about this legislation as it moves through congressional committees. For more information on R&D tax credits for manufacturers, please download our e-book, The Manufacturer's Guide to R&D Tax Credits.

Request a free assessment to determine qualifying R&D tax credit eligibility.

Tax Point Advisors, a firm with expertise in working with small and midsize companies, works with businesses that may qualify for R&D tax benefits. For more information, you may also contact us at (800) 260-4138, or please leave us a message below. 


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