Support the Startup Innovation Credit Act of 2013!
S.193, the “Startup Innovation Credit Act of 2013” has been introduced in the Senate. We anticipate that the same legislation will be introduced in the House, but the timing is uncertain. Learn how this piece of legislation boosts the economy and how you can support it.
What does S.193 do?
This bipartisan legislation, S.193, the “Startup Innovation and Credit Act of 2013”, allows an R&D tax credit against payroll tax liability, as opposed to income tax liability. Most startups don’t generate income tax liability in the early years, and therefore, cannot take advantage of the tax credits given for R&D.
This means that most startups don’t receive any current economic benefit from the existing R&D tax credit.
S.193 fixes that by giving small startup companies a tax credit against payroll tax, allowing startups to keep more cash on hand. The longer a startup can keep cash, the longer they can live and grow while their new innovations get ready for market.
Why is it important?
Innovative startup companies fuel our economy and create new high-paying jobs. Allowing these companies to reduce their payroll tax liability by offsetting their R&D tax credit will provide support for innovative startup companies to invest in R&D.