Lawmakers in Arizona have passed a new law, strengthening an existing tax credit for small business owners who invest in research and development.
The bill may help entrepreneurs see returns on their investments by giving companies with less than 150 employees a “discounted refund” of 75 percent for every dollar already earned through the R&D credit.
“This legislation is good public policy that rewards small innovation-based companies for their investments in R&D and allows them to create high-paying, high-quality jobs in Arizona,” said Steven Zylstra, president and CEO of the Arizona Technology Council.
Analysts say the original tax credit has already proven very helpful for entrepreneurs. In 2007, individual and corporate taxpayers combined to claim more than $46 million dollars in credits through the program.
The Arizona Technology Council says that the tax credit has also spurred development among large and small companies. In 2009, Intel announced $3 billion data center project in Chandler, Arizona. The council says the R&D tax credit played a significant role in the company’s decision to build there.
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