Tax Alert: Alliantgroup Applauds Recent Congressional Efforts To Expand And Continue The R&D Credit

Online, August 2, 2012 (Newswire.com) - First, the Startup Innovation Credit Act of 2012 by Senators Chris Coons (D-DE) and Mike Enzi (R-WY) proposes to expand the Research & Development credit to include young companies. Co-sponsored by Senators Marco Rubio (R-FL) and Charles Schumer (D-NY), it seeks to encourage new, innovative enterprises to build their businesses and help them contribute to the economy through the R&D Credit.

"The Research and Development Tax Credit has helped tens of thousands of successful American companies create jobs by incentivizing investment in innovation, but startups can't take advantage. Firms younger than five years old have been responsible for the overwhelming majority of our new jobs in recent years," Senator Coons said. "They are driving our nation's economic recovery by taking risks to turn their ideas into marketable products. Let's help build the next generation of American manufacturing by investing in American innovators with the Startup Innovation Credit Act."

The other significant initiative is a deal struck yesterday between Senate Democrats and Republicans to extend billions of dollars in tax incentives for businesses and individuals including the R&D Credit. The deal was announced by Senate Finance Committee Chairman Max Baucus (D-MT) and Senator Orrin Hatch (R-UT) on August 1, after both parties made compromises to reach an agreement. "This effort has proven that legislating can still be done if both sides work together," Baucus said.

The federal government currently allots more than $9 billion for the Research & Development Tax Credit. It is offered for businesses in many different industries including software, architecture, construction, agriculture, food production, and manufacturing, amongst many others. The tax incentive is popular on both sides of the aisle and is widely seen as critical to businesses and the economy.

alliantgroup's National Managing Director and the former Senior Counsel to the U.S. Senate Finance Committee, Dean Zerbe, believes the proposed legislation will be highly beneficial for the current economic environment. "These important initiatives recognize both the value of the R&D credit and a desire to see it expand. The R&D credit is a vital economic tool, but one of the great frustrations is that the current rules don't do anything for some of our most innovative companies - start-ups," Dean said. "The extension proposal and The Startup Innovation Credit Act will be godsends for thousands of businesses across the country, encouraging innovation and new jobs. Senators Coons and Enzi should be commended for their efforts to help our economy go forward in new ways, as should all the senators who worked to extend the existing R&D credit."

alliantgroup is the nation's leading specialty tax firm and has helped thousands of companies claim more than $2 billion in tax incentives. alliantgroup knows the R&D credit is a crucial tool for promoting national prosperity and believes this new legislation, if enacted, would reap massive benefits across the board.

Contact alliantgroup today to learn more about how your business may qualify for valuable government incentives.