The net result of this legislation would be to increase support for research by start-ups without breaking the link between the credit and actual taxes paid. This should significantly bolster the U.S. innovation ecosystem.

ITIF Supports Legislation to Boost the R&D Tax Credit for Start-Ups

Congress should at least double the regular R&D tax credit to 40 percent and the Alternative Simplified Credit to 28 percent, since U.S. R&D tax credit support currently ranks 31st out of 28 OECD nations and the four BRIC economies.

To Do: Double the R&D and Alternative Simplified Credits

Congress should allow small research companies to carry their net operating losses forward even after a change in ownership.

To Do: Allow Small Research Companies to Carry Forward Net Operating Losses

New budget proposal has the right idea for the R&E tax credit.

New Administration Budget has Smart Proposals for Boosting R&D

Expanding the R&D credit would spur job creation and innovation.

Create Jobs by Expanding the R&D Tax Credit

Congress should pass the Support the Small Business R&D Act to require the Small Business Administration and IRS to expand knowledge-sharing and training on how the R&D an alternative minimum credits work.

To Do: Pass the Support the Small Business R&D Act

ITIF outlines several steps Congress should take to strengthen the credit.

Expanding the Research and Development Tax Credit to Drive Innovation, Competitiveness and Prosperity

Congress should create a Super CHIPS Tax Credit for advanced-industry R&D and production firms’ purchases of machinery, equipment, and buildings.

Partly Done: Create a Super CHIPS Credit

Although it contains many positive proposals, the Tax Reform Act of 2014 would reduce the effectiveness of R&D tax incentives.

Partly Done: Expand the R&D Credit for Pre-Profit Start-Ups

Recommendation

Details

Update

Editors’ Recommendations

Twelve Tax Reforms to Spur Innovation and Competitiveness

The Case for Improving America’s Research and Experimentation Tax Credit

Related

ITIF Supports Legislation to Boost the R&D Tax Credit for Start-Ups

To Do: Double the R&D and Alternative Simplified Credits

To Do: Allow Small Research Companies to Carry Forward Net Operating Losses