Bipartisan Legislation Aims To Help Small Businesses Utilize R&D Tax Credit

Earlier this month, U.S. Sen. Pat Roberts (R-KS) and U.S. Sen. Chris Coons (D-DE) introduced bipartisan legislation that would enable small businesses to take advantage of a new research and development (R&D) tax credit.

The Support Small Business R&D Act would require the Small Business Administration (SBA) and the IRS to collaborate on training materials that explain how entrepreneurs who invest in research could be eligible for the R&D tax credit to offset business expenses.

“The goal of the 2015 legislation is to make sure that small businesses and innovative startups, the major job creators in our economy, are able to easily access the R&D credit,” Roberts explained. “The R&D credit is complicated, so it is critical that small businesses and startups interested in the R&D credit have access to basic assistance from the Small Business Administration and the IRS to put them on the right track to claiming the credit. The bill we introduce today directs the federal government – at no new cost to taxpayers – to help our job creators to utilize the R&D credit, which will provide long-term benefit to the economy.”

Under the bill, the newly-drafted materials would be supplied to SBA programs as well as business development groups that partner with SBA programs throughout the United States to help make information about the tax credit more accessible to small businesses and startups.

“By including our proposal to expand the R&D credit to startups and small businesses in bipartisan tax legislation, Congress took a big step towards encouraging our small companies to innovate,” Coons said. “But our responsibility does not end now that this proposal is law. I am proud to work with Sen. Roberts to make sure that our startups and small businesses have the tools they need to take advantage of the R&D credit and continue to invest in advanced research.”

In 2015, Congress acted to expand access to the R&D tax credit and to make it permanent. However, small businesses currently lack the necessary information to use the credit to offset research costs. The Support Small Business R&D Act is intended to close that gap.




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