U.S. Rep. Jackie Walorski (R-IN) has introduced a bill that would double the research and development (R&D) credit. The Fostering Innovation and Research to Strengthen Tomorrow (FIRST) Act would double the “traditional” credit to 40%. For more established companies, the existing credit rate, which uses a complicated formula, would double, from 20% to 40% of their increase in R&D spending. The bill would also double the Alternative Simplified Credit (ASC). The existing ASC rate, which uses a simpler formula, would double from 14% to 28% of the increase in R&D spending. For companies with no U.S. R&D in the preceding three years, the credit would increase from 6% to 14% of R&D spending. Contact us with any questions. © 2022