U.S. Rep. Jackie Walorski (R-Ind.), a senior member of the House Ways and Means Committee, showed herself to be possibly the biggest champion of R&D tax credits on Capitol Hill. She’s doubling down on them. Recently she introduced H.R. 8253, the Fostering Innovation and Research to Strengthen Tomorrow (FIRST) Act, which would double the tax credit and make it easier for small businesses to use it.
The American people’s innovative and entrepreneurial spirit drives our nation’s success, she said.
Doubling the R&D tax credit will encourage American companies–especially small businesses and startups–to invest in innovation that will unleash economic growth and prosperity. The FIRST Act will take a strategic step toward ensuring that America will lead the world in scientific discoveries, technological breakthroughs, and cutting-edge manufacturing for the 21st century.
The First Act
The FIRST Act would double nearly all the benefit that business currently enjoy under the credit.
- It would double the existing traditional credit rate from 20 percent to 40 percent of the increase in R&D spending.
- It would double the Alternative Simplified Credit (ASC) from 14 percent to 28 percent of the increase in R&D spending.
- It would more than double the credit for firms with no history of U.S. research in the past three years from 6 percent to 14 percent of R&D spending.
- It would double the startup limit from $250,000 to $500,000 so that businesses with little income in the past five years can use the credit to offset Social Security payroll taxes.
This bill is crucial to making America the world leader in innovation,” said Rep. Kevin Brady (R-Texas), Republican leader of the Ways and Means Committee. “With greater support for research and development, the U.S. can develop more cures, return drug manufacturing to the United States, and achieve medical independence. I want to thank Rep. Walorski for her leadership on this bill.
The National Association of Manufacturers (NAM) also supports Rep. Walorski’s FIRST Act.
The manufacturing industry is the backbone of American research and development, and this bill would support jobs, boost innovation and help ensure America’s future competitiveness, David Eiselberg, the NAM’s Senior Director of Tax Policy.
We’ll keep you updated on Rep. Walorski’s initiative, as well as other matters of lively interest to the R&D tax credit community!