Our VP of Operations, Monika Diehl, spoke with Law360 about the Inflation Reduction Act and how expanding the R&D tax credit will be especially important to smaller businesses across the country.
The Inflation Reduction Act, signed into law on August 16, 2022, includes significant legislation for various issues. One of the most noteworthy is an increase in the Research and Development Tax Credit.
The credit will see an increase of $250,000, which is double its original amount. Additionally, the Inflation Reduction Act allows the R&D tax credit to be claimed against both Medicare and FICA payroll tax obligations, as opposed to just FICA. Both of these changes significantly benefit companies working to create and improve products or processes.
