Assembly Bill 437 would allow small businesses to cash out tax credits from research and development that they are already earning, but having trouble using.
A new legislative proposal might mean more tax credits for your California small business.
According to Assembly Bill 437, authored by Assembly Speaker Toni Atkins, would make it easier for you to get additional product into your pipeline, says NFIB.
“These are tangible benefits that our small business owner members can actually use,” said John Kabateck, NFIB/California Executive Director.
Businesses with $5 million in revenues of fewer—which includes the vast majority of NFIB members in the state—would be able to cash out up to 10 percent research tax credits earned in 2014 and 2015, according to the bill. Next year, in 2016, qualifying businesses would be able to tax out up to 15 percent of those same credits.
At present, many of these credits aren’t used, according to data from the Franchise Tax Board.
At press time, the bill remained in the Committee on Revenue and Taxes.
