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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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US

Trump Accuses Joe Biden Of Lying About His Involvement In His Son’s Illegal Business Dealings In Ukraine

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Biden and Trump are both running for the post of President of the United States. Both have been slinging accusations around, trying to bring each other down in the new round of who can accuse who Trump has accused Joe Biden of lying. Trump claimed that Joe Biden was lying about his involvement in his son Hunter Biden’s illegal business in Ukraine.

Trump made the accusations based on the information shared by the New York Post. He said that the facts were published by an outstanding newspaper, the New York Post. Moreover, Trump also talked about the series of emails that were shared by the New York Post.

The emails are about an adviser to the Ukrainian gas firm Burisma thanking the Hunter Biden in 2015 for an invitation to meet his father. Another email from 2014 showed the adviser, Vadym Pozharskyi, asking for Hunter Biden’s help in stopping politically motivated actions. These emails were provided by the New York Post, and Trump has used this information in his new speech to accuse Joe Biden of being a liar.

In his rally, Trump asked Biden to make public all his emails, meetings, phone calls, transcripts, and records related to his family’s business dealings. Trump has also accused Biden of doing pedallings around the world, including China and including Russia. As China and Russia seem to be at crossroads with the US now, Biden’s involvement with any of these nations can cost him many votes.

However, Biden’s campaign denied any of the claims. They rejected all the accusations, claiming that Joe Biden’s schedule showed no such meeting taking place. Andrew Bates, the campaign spokesman of Biden, said that Joe Biden was falsely accused. Moreover, Biden carried out the official U.S. policy towards Ukraine and engaged in no wrongdoings.

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