startup公司等于没用

The Dark Ages (1981-2016)

Since its inception, tech startups have always been able to claim the R&D credit. This only made sense, since these small innovative startups have been the primary engine of new economic growth in this country over the last three decades.

However, there was little incentive for startups to claim the credit since it was only useful for offsetting income tax. Most early-stage startups are not yet profitable, therefore they are not paying income tax.

However, even if unprofitable, the benefits of the credit were not entirely lost, as the federal research credit did come with a 20 year carry-forward provision (startups that were not profitable could calculate their yearly credit, and then claim those previous credits in up to 20 future years when they became revenue-positive).

Sounded fine in theory; however, in practice the R&D Tax Credit is very complex— in fact, it’s one of the most uncertain areas of the entire tax code. As such, many tax practitioners don’t have the expertise to calculate it, and many of the specialty firms who handle the work charge fees that make the credit cost-prohibitive for cash-strapped startups.

As a result, the businesses that desperately needed cash to continue doing some of the most exciting R&D in the world simply could not justify claiming a credit that wouldn’t benefit them for 10, 15 or even 20 years to come.