The R&D Tax Credit And Its Implications For Small Business

Abstract

The present study describes how the R&D tax credit functions, explores the impact of the R&D tax credit on SMEs, and proposes that the R&D tax credit is granted permanent status in the US tax code. This would provide a permanent tax incentive for SMEs to create new technology based intellectual property. Similar tax credits have been effectively adopted in Europe to stimulate high technology business creation.