A news release last week from Sen. Christopher Coons (D., Del.) stated that, “[Sen. Coons] and Pat Roberts (R., Kan.) 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.”
The release added that, “‘We welcomed legislation passed by Congress in 2015 that expanded the R&D credit to provide access to startups and small businesses,’ said Stephen S. Tang, Ph.D, MBA, President, University City Science Center. ‘The challenge now is to raise awareness in the startup community. We believe the Support Small Business R&D Act is an important step towards encouraging the SBA and IRS, in partnership with business incubators like the Science Center, to help educate the startup community about the R&D credit. This critical legislation introduced by Senators Coons and Roberts will help us explain the benefits of the R&D credit to the startups that are driving economic activity in the Philadelphia and Delaware region.'”
