It's all about job creation and innovation.
The Federal Credit for Increasing Research Activities, or R&D Tax Credit, as it is commonly known, was enacted in 1981. Throughout its history, it has changed section numbers, been temporarily extended 16 times, lapsed for a year, and was finally made permanent by the PATH Act at the end of 2015.
This dynamic business incentive has evolved in part because of the historical bipartisan support it has enjoyed. Both political parties have leveraged the credit as a tool for pushing legislation that was otherwise unpopular with the other side of the aisle.
However, the original intent of the R&D Tax Credit in Kemp-Roth Tax Cut (Economic Recovery Tax Act, or “ERTA”) of 1981 was not to create a legislative chess piece. The intent was to provide a tax break for businesses, stimulate job growth, and encourage domestic innovation.
It is with this intent in mind that Endeavor Advisors seeks to assist U.S. business owners and their tax preparers to claim the R&D Tax Credit. Please contact us for a free assessment of your tax savings opportunity!
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With all the changes to the R&D Tax Credit over the last decade, from the fall of Tier 1 and contingent fees to Trump’s Tax Reform and the onslaught of specialty providers and consultants, where does that leave the American taxpayer? What do business owners and tax preparers need to know about the R&D tax credit now in order make the best investment of their time and money? Les Bryson of Endeavor Advisors tackles this and more in: The Current R&D Landscape: What Do We Do Now?