Senator Hassan Joins Colleagues in Introducing Bipartisan Bill to Boost Federal Investment in American Research and Development
WASHINGTON – U.S. Senator Maggie Hassan (D-NH) joined Senators Chris Coons (D-DE), Steve Daines (R-MT), Catherine Cortez Masto (D-NV), and Todd Young (R-IN) in introducing legislation to provide expanded tax support for American companies that invest in the research and development of new products and technologies.
“We must ensure that American companies remain at the forefront of innovation, especially as we emerge from the COVID-19 pandemic,” said Senator Hassan. “This bipartisan bill will help create jobs by expanding critical R&D tax incentives for startups and small businesses. I will keep working with my colleagues on both sides of the aisle to strengthen support for innovative American businesses.”
The Furthering Our Recovery With American Research and Development, or FORWARD Act:
- Expands access to the research and development tax credit for new small- and medium-sized businesses. Firms with up to $20 million in gross receipts will be eligible to use the credit to reduce their payroll tax obligation during a span of 8 years—up from current thresholds of $5 million and 5 years. A new de minimis threshold delays the start of the 8-year window until gross receipts exceed $25,000.
- Strengthens the economy by incentivizing American manufacturing. The R&D credit is increased for companies that generate the majority of their gross receipts from manufacturing their products in the United States.
- Targets specific activities that enhance economic productivity by spreading knowledge and work opportunities to the U.S. workforce. The full R&D credit is expanded to cover R&D-related worker training costs. For R&D performed in collaboration with industry consortia, academic institutions, federal laboratories, and other entities, the credit rate is increased by one quarter (to 25% and 17.5% for the Regular Research and Alternative Simplified Credits, respectively).
- Activates the R&D credit by providing outreach, education, and training for businesses with limited accounting expertise, to be provided by the Small Business Administration and the Internal Revenue Service.
Senator Hassan also introduced the bipartisan American Innovation and Jobs Act in March which contains similar provisions, including immediately doubling and then further raising the cap over time for the refundable R&D tax credit for small businesses and startups.
The bipartisan bill is part of Senator Hassan's continued efforts to support innovative businesses in New Hampshire and across the country. As Governor of New Hampshire, Senator Hassan doubled the supply of state R&D tax credits and made the credit permanent. Earlier this week, the Senate passed the historic, bipartisan United States Innovation and Competition Act, which also included key priorities secured by Senator Hassan to help boost the economy and harden critical infrastructure. Senator Hassan also hosts an annual Innovate NH Entrepreneurship Forum, which features interactive workshops to help entrepreneurs from across the state get their ideas off the ground.
Next Article Previous Article