In 2015, changes to the Protecting Americans from Tax Hikes (PATH) Act went into effect. This changed the ramifications of the R&D credit starting with the 2016 tax year.
Now, small businesses can figure and claim a credit for their eligible research activities as a payroll tax credit, rather than against their income tax. PATH allows R&D costs to be credited against the employer portion of social security taxes.
George Emerling, Vice President, The Emerling Agency
Lisa Carpenter, Director of Human Resources at Olean Wholesale Grocery Coop
Kevin Casey, Chief Operating Officer at Mead Square Pharmacy