Have you heard about the Bipartisan R&D Tax Credit Bill? Well, if you are in the design or manufacturing industry, you’ll want to find out. That’s because this bill – also known as the bipartisan Invent and Manufacture in America bill – allows for enhanced tax credits for companies that conduct research and development in the United States.
R&D Tax Credit for Design and Manufacturing Companies
This bill enhances the value of the R&D tax credit by up to 25 percent. That goes for companies that perform the majority of their manufacturing in the U.S. According to a report from Wolters Kluwer, the legislation increases cash flow for start-ups involved in R&D intensive activities. Companies benefit because the bill reduces past, current, and future tax liabilities. This brings huge tax savings.
The government created this bill because the goal is to remain the world’s leading economy in the 21st century. In order to do that, we must continue to expand investments in research and development. That means that not only should products be invented in the U.S., but also be manufactured here as well.
“If we have strong, growing, manufacturing companies, we can create jobs and drive foreign investment to the U.S.,” said tax reform expert and CEO of Engineered Tax Services, Julio Gonzalez. He also added that it creates economic growth – a major benefit for our country.
New products, technologies, and lower prices created through R&D, help to raise wages, create more cash flow, and create more jobs.
“As a tax expert who believes in the American worker and the R&D tax credit, I fully support how this bill benefits the workers of our country. We lose competitive advantage When American innovations are manufactured abroad. This bill will strengthen innovation here and also will make us more globally competitive. If technologies and goods are invented and manufactured here, it promotes further advances for business owners and manufacturers,” added Mr. Gonzalez.
For an R&D consultation, please contact Engineered Tax Services at (800) 236-6519. You can also learn more at EngineeredTaxServices.com.