R&D tax credit can help SMEs employ workers made redundant by large companies

Small and medium-sized enterprises can tap into the 32,000 technology industry workers laid off last year by companies such as Tesla, Coinbase, TikTok, Twitter. SMBs can benefit from the government’s incentives to support innovation, including the Research and Development Tax Credit, also known as R&D.

Congress established R&D in the early 1980s particularly to encourage innovation in both large and small enterprises and provided incentives for businesses by offering repayable credits for innovation-related expenditures, such as compensation for employees who work to strengthen products or processes.

It has recently been extended to non-innovation-related incentives, such as the Employee Retention Credit and other recent COVID-related incentives, which pave the way for the employment of employees made redundant by large technology companies.

The government provides incentives to promote innovation through R&D, and innovation always seems to be a prerequisite for the position when companies hire these former technology workers. As a result, many companies discover that the compensation and expenses associated with these employees are appropriate for these government incentives, thereby relieving them of the enormous financial burden they are supposed to bear.

The sources for this piece include an article in TechRepublic.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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