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WASHINGTON – Senator Maggie Hassan (D-NH), a member of the Senate Finance Committee, and Senator Thom Tillis (R-NC) today introduced bipartisan legislation to double the refundable research and development (R&D) tax credit for startups and extend it to more small businesses. The R&D tax credit supports the efforts of businesses to invest in the development of new, innovative products that lead to job creation and a stronger economy.
Senator Hassan announced the bipartisan bill on Monday morning, during a visit to Sunrise Labs in Bedford, New Hampshire. The company develops products for startups and companies in New Hampshire, with a focus on health care products such as medical devices and lab instruments. Senator Hassan toured the company and heard more about the importance of research and development tax credits to the innovative businesses they work with.
“New Hampshire entrepreneurs and small business owners are at the forefront of technological innovations on everything from cybersecurity to health care, and I’m focused on ensuring that they have the support they need to thrive and grow,” Senator Hassan said. “Expanding the R&D tax credit not only helps these innovative businesses succeed, but it also has the ripple effect of growing our economy as a whole. Ahead of introducing this bipartisan bill, I was glad to tour Sunrise Labs, which does really impressive work partnering with the very start-ups who could benefit from the expanded tax credit in our bill.”
“Research and development plays a crucial role in allowing small businesses in North Carolina and across the country grow and create jobs,” Senator Tillis said. “This bipartisan legislation will expand the R&D tax credit so American innovation can continue to thrive and compete globally.”
The bipartisan Research and Development Tax Credit Expansion Act would expand the R&D tax credit for new and small businesses by doubling the refundability of the credit from $250,000 to $500,000, extending the credit to all small businesses with less than $10 million in annual revenue, and expanding how the refundable credit is claimed against payroll taxes. The legislation also strengthens incentives for startups to increase R&D investment and removes barriers that limit startups’ ability to claim the credit.
The R&D Tax Credit Expansion Act is endorsed by the Center for American Entrepreneurship, National Venture Capital Association, Angel Capital Association, and Information Technology & Innovation Foundation.
Senator Hassan has long fought to expand the R&D tax credit and support New Hampshire’s growing businesses. As Governor of New Hampshire, Senator Hassan doubled the supply of state R&D tax credits and made the credit permanent. The first bill Senator Hassan introduced in the Senate was the Reigniting Opportunity for Innovators Act, which would help provide student loan relief for entrepreneurs. Last fall, Senator Hassan hosted the Innovate NH Entrepreneurship Forum, which featured interactive workshops to help entrepreneurs from across the state get their ideas off the ground.