So, you're a entrepreneur and have heard about the Federal Research and Experimentation Tax Credit, but haven't been able to utilize it because until now you've had to have a hefty income tax to write the credit against. Well, that is now changing. Realizing that many startup businesses do not have large incomes (yet), Congress has expanded the rules to help offset payroll taxes as well. So while your startup may be light on income, it's likely to have employees performing R&D.
If this is the case, you'll want to follow the rule changes and note the details. The first hurdle is this: "Newer companies qualify for the payroll offsets for the 2016 tax year if the startup was launched after 2011 and their 2016 revenues are less than $5 million." More details and a good primer on the topic can be found in the Forbes blog post about it.
We'll be following the topic pretty closely as it can have positive impacts on many of the companies coming through our accelerator, so feel free to reach out to us as well as this progresses.
All the Best,
The Ignite Northwest Team