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This year is already shaping up to be a banner one for startups - and believe it or not, CEOs and investors of these innovative software and technology companies have Congress to thank.
In December, as part of the bipartisan tax deal reached by Congress and signed into law by the president, the federal Research and Development (R&D) Tax Credit was made permanent after years of last-minute, deadlinedriven extensions. Providing companies an estimated $10 billion a year in annual tax savings, the R&D Tax Credit remains the largest credit out there for U.S. businesses - and due to Herculean Congressional efforts, eligible companies will now move forward certain of the credit's future when considering their investments.
And, not only was the credit made permanent for the first time in its 34-year history, but starting in 2016 the R&D Tax Credit will be greatly expanded to benefit companies that were effectively barred from eligibility in the past In particular, startups and other small businesses should take special note of major changes specifically designed for their benefit
Startup provision
For years, one of the real oddities of the R&D Tax Credit was that many of our nation's most innovative companies were unable to claim the credit as they were just opening their doors. As the majority of startups do not immediately turn a profit and...