Interesting and could be helpful, but I'd like more details about the "new Federal R&D Tax Credit" specifically
Is it this (which does not appear to be new) or something else?
https://en.wikipedia.org/wiki/Research_%26_Experimentation_T...
Is it this (which does not appear to be new) or something else?
https://en.wikipedia.org/wiki/Research_%26_Experimentation_T...
- Before, you could only offset your corporate income taxes, so you couldn't claim the credit if you weren't profitable (because you wouldn't have corporate income taxes). Now, you can offset social security taxes, which are based on payroll. So more startups can now benefit from this credit.
- Gusto has rolled out an new tool that allows their customers to much more easily claim their R&D tax credit, taking on much of the grunt work.
Disclaimer (?): I'm a PM on Gusto's payroll team
Now, I don't think that's actually what the policy change has done, but the problem isn't allowing firms to offset the tax.
The right kind of incentive would be a grant, just like the earned income tax credit which comes out of the general fund.
It wasn't enough to get rid of pensions, stagnate wages, shift most income to the top 1%. Now we're going to fund innovation out of the piggy bank of the social program that keeps most elderly out of poverty.
That's my point. It's the wrong way to build a business incentive.
No offense intended to Gusto.