Among the most vital aspects of the legislation, the extenders bill will expand and make permanent the Research and Development (R&D) Tax Credit, providing U.S. companies much needed certainty and greater access to one of the most valuable and pro-growth
On Dec. 18, President Obama signed into law tax extenders legislation that will extend more than 50 expired provisions of the tax code, including several key pro-business initiatives. Among the most vital aspects of the legislation, the extenders bill will expand and make permanent the Research and Development (R&D) Tax Credit, providing U.S. companies much needed certainty and greater access to one of the most valuable and pro-growth tax incentives.
The two key expansions to the R&D Tax Credit will begin in 2016. First and foremost, businesses with less than $50 million in gross receipts will now be able to claim the credit against their Alternative Minimum Tax (AMT), thereby removing the single greatest barrier preventing companies from claiming the credit in the past. Secondly, the bill includes a provision that opens the credit up for start-ups, allowing businesses with gross receipts of less than $5 million a year to take the credit against their payroll taxes (capped at up to $250,000 per year) for up to five years.
alliantgroup commended these commonsense solutions and the bipartisan work it took to get the extenders deal to the finish-line. The changes to the R&D Tax Credit and other business-friendly provisions such as the extension of the Section 179D tax deduction for energy-efficient commercial buildings will be a massive help to companies across the nation, putting valuable tax dollars back into the pockets of U.S. businesses for job creation and growth.
Such a massive undertaking, particularly with regards to the R&D Tax Credit and Section 179D, which both took several years of hard work and negotiations to come to fruition, could not have happened without several congressional members leading the charge for U.S. businesses. In particular, alliantgroup thanked Congressman and House Ways and Means Committee Chairman Kevin Brady (R-TX) for his leadership in seeing the extenders deal through. The group thanked Sens. Ron Wyden (D-OR) and Orrin Hatch (R-UT) for their leadership in making the entire deal happen and for their championing of the R&D credit; Sens. Pat Roberts (R-KS), Chuck Schumer (D-NY) and Chuck Grassley (R-IA) for their vocal support for the AMT turnoff and Sen. Chris Coons (D-DE) for his championing of the start-up provision. Sen. Ben Cardin (D-MD) also was thanked for his exhaustive efforts with 179D and its two-year extension.