Bipartisan Bill from Coons, Roberts Would Help Startups ans Small Businesses Invest in Research

Press Release

U.S. Senators Chris Coons (D-Del.) and Pat Roberts (R-Kan.) yesterday introduced the Support Small Business R&D Act, legislation that will help startups and small businesses take advantage of the newly available research and development (R&D) tax credit.

Specifically, the bill would require the Small Business Administration and Internal Revenue Service to partner to develop educational and training materials for entrepreneurs who invest in research and could be eligible to use the R&D credit to offset their expenses. These materials would be provided to SBA programs around the country and business development entities that partner with SBA programs, such as universities, business accelerators, and business incubators.

At the end of 2015, Congress passed legislation that not only made the R&D credit permanent but also expanded the credit to allow more startups and small businesses to access it. The inspiration to expand the credit was drawn from a proposal by Senators Coons and Roberts known as the Innovators Job Creation Act. However, despite these changes to the credit, many small businesses do not have the information necessary to take advantage of this opportunity to offset their research costs. The Support Small Business R&D Act is designed to address that knowledge gap.

"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," said Senator Coons. "But our responsibility does not end now that this proposal is law. I am proud to work with Senator 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."

"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," said Senator Roberts. "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."

Source