The Payroll R&D Credit, established five years ago this past December, for the first time allowed pre-revenue innovators to take a portion of their R&D credit against their payroll tax obligation. The Credit served as a recognition from Congress that income tax credits provide no immediate benefit to pre-revenue biotechs.<\/p>\n
Allowing these companies to offset payroll taxes with the R&D credit helps even the smallest biotechs unlock the federal R&D incentives intended to encourage ever-greater investment in U.S. research and development.\u00a0 The Payroll R&D Credit acknowledged that U.S. R&D policy should support all innovators, large and small.<\/p>\n
As we reflect on this achievement five years later, there is more work to be done to ensure the incentive goes far enough in truly supporting small pre-revenue innovators as policymakers intended.<\/p>\n
To support BIO\u2019s advocacy to make sure the credit works for small biotechs, we have partnered with EY on a study to analyze credit utilization among small companies. To take this important survey, please click\u00a0here<\/a>. Your participation in this survey will be instrumental in supporting our advocacy moving forward. Any information provided will only be viewed by EY and only reported in aggregate.<\/p>\n