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U.S. Rep. Jackie Walorski Introduces Bill to Double R&D Tax Credit

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U.S. Rep. Jackie Walorski (R-Ind.) introduced legislation to double the R&D tax credit and allow more startups and small businesses to access the credit.

“America’s recovery from the unprecedented crisis we are facing will be driven by our innovative and entrepreneurial spirit,” Congresswoman Walorski said. “Doubling the R&D tax credit will encourage companies – especially small businesses and startups – to invest more in research and development that will unleash economic growth and prosperity. This commonsense measure will go a long way toward keeping America ahead of our global competitors and ensuring we continue to lead the world in scientific discoveries, technological breakthroughs, and cutting-edge manufacturing.”

Each year the U.S. government provides billions of dollars in funding to innovative businesses through the R&D tax credit program. This legislation would double the existing traditional R&D tax credit rate from 20 percent to 40 percent of the increase in R&D spending for more established companies, and would double the existing alternative simplified credit rate from 14 percent to 28 percent of the increase in R&D spending, according to the summary. For companies with no history of U.S. research in the past three years, the credit would more than double from 6 percent to 14 percent of R&D spending.

Companies with relatively low income in the past five years have the opportunity to utilize the R&D tax credits to offset Social Security payroll taxes, with the limit on the amount they could claim doubling from $250,000 to $500,000, the bill summary says. 

“This is a great step to support innovation and entrepreneurship in the U.S. which will drive economic growth in the years to come,” said Lloyed Lobo, President of R&D tax credit software Boast.AI. “However, using R&D tax credits to offset income taxes or Social Security payroll taxes may not be feasible in the next two years as many businesses may not have profits to be taxable and may not have significant Social Security payroll tax liability due to reduced headcount as a result of the global pandemic and looming recession. Additionally, using R&D tax credits to offset Social Security payroll taxes can be a long process for startups and small businesses as they have to wait several quarters before recognizing the full cash benefit of the credits. Instead of tax offsets, a direct refund check should be provided to companies upon their R&D tax credit filing, similar to countries like Canada and the UK.”

The full text of the legislation can be found here.

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Youngsters in the US are now Focusing on Hiring a Financial Consultant in their 20s

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The rising awareness about investment and gain in financial knowledge are prompting youngsters to hire a financial consultant. In the US, youngsters are focusing on hiring a financial consultant in their 20s to effectively manage their finances.

Over time, the perception of investment among youngsters has changed drastically. It is seen that college students are now managing their money on their own. Thus, in order to make strong financial decisions, they are going for financial consultants.

Advisors Management Group is providing a group of strategic financial consultants to help businesses and individuals in Eau Claire, Wisconsin. College students are now learning the intricacies of personal finance management with the help of Eau Claire financial consultant services.

Youngsters are realizing the need for financial planning in their lives. Thus, they are focusing on their retirement planning, investment goals, and other financial subjects. Financial consultants or advisors easily assess the current financial health of an individual.

After assessing the details of the financial life of a person, they prepare financial plans as per his financial needs. Moreover, financial advisors help people in knowing answers to their critical financial investment questions.

Thus, hiring a financial advisor is helping youngsters in the US embark on a financial management journey with a robust foundation. Hence, youngsters are learning to invest safely by gaining knowledge from financial advisors.

Besides, they are developing healthy financial habits in their lives. Eventually, it is helping them secure their life financially. And it is contributing to a boom in financial stability in the lives of youngsters in the US.

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