Attention all small business startups! If you haven’t heard about the provision made to the Inflation Reduction Act that could tremendously change your business for the BETTER, you will want to keep reading. President Biden signed into law a new solution allowing you, as a business owner, to potentially double the amount you can claim on the research and development tax credit from $250,000 to $500,000 per year against payroll taxes.
Currently, small businesses that don’t have enough income tax liability who aren’t taking advantage of the R&D credit, can apply up to $250k of the credit toward their Social Security payroll tax liability. However, In order to qualify for the new credit, your small business would need to have less than $5 Million of gross receipts and be less than 5 years old. The Inflation Reduction Act would allow an addition credit of up to $250k to be applied against the Medicare payroll tax for tax years starting after Dec. 3, 2022. 💴
If you’re a small business owner and interested in learning how to take advantage of this provision, the RecoupeTax team can help you overcome all of the IRS obstacles with documentation and overall requirements. Our pre-qualification process is proven to get results quickly and efficiently for our clients. Visit RecoupeTax.com for a FREE qualification today! 💰