Chamber Insider Blog

Blog post written by: David Skiles, The Vectre Corporation
For more information on the Public Policy Initiatives that the Loudoun Chamber is involved in, click here.

U.S. taxpayers claim nearly $10 billion in R&D tax credits each year. Large companies aren’t the only businesses that can get those tax benefits!

The 2016 General Assembly Session will be remembered for the bi-partisan efforts that were made to improve Virginia’s business and regulatory climate and invest in key infrastructure that can serve as a catalyst for economic development. It is clear that the Governor and General Assembly recognize the importance of developing a 21^st Century economy that can attract good paying jobs and this was demonstrated in the myriad of bills that were passed and ultimately signed into law.

One legislative initiative that will have a positive impact on Virginia’s competitiveness with other states was the passage of the Major Innovator Research & Development Tax Credit. This legislation built upon the success of the research and development tax credit that was passed by the General Assembly in 2011.

Senate Bill 58 and House Bill 884 strengthened the current research and development tax credit for small enterprises while creating a tax credit for major innovators. The legislation also introduced the Alternative Simplified Credit formula as the method to calculate research and development activity for larger businesses. Ultimately, the Major Innovator Research & Development Tax Credit will help ensure that Virginia remains an attractive place to do business — particularly for firms in fast-growing advanced technologies such as: cybersecurity, unmanned systems and biosciences. These 21^st Century research-intensive sectors are not only reliable sources of good-paying jobs; they also make significant contributions to local economies.

The Virginia General Assembly has long understood the benefits of incentivizing research and development activity. In 2011, the General Assembly enacted a research and development tax credit with overwhelming, bipartisan support in both chambers. However, since then, other states have boosted their efforts to attract innovative businesses – specifically larger companies that spend millions on R&D. The passage of Senate Bill 58/House Bill 884 means that innovative companies can make long term commitments to the Commonwealth and be incentivized to create good paying jobs and make high-tech advances in fast growing industries.

The Major Innovator Research & Development Tax Credit received broad, bi-partisan support from the Governor and General Assembly. Its support among state leaders shows the value that they place on attracting good paying jobs by incentivizing research and development activity. Additionally, the success of this effort was also the result of a broad coalition of businesses, chambers of commerce, and industry trade associations coming together to advocate for a more robust research and development tax credit. I am privileged to have worked on this important issue for my client, Raytheon, which was a member of the Research & Development Coalition and an early advocate for this important tax credit.

– Thank you to David Skiles for this blog post

For more information on the Public Policy Initiatives that the Loudoun Chamber is involved in, click here.

David Skiles is a government affairs advisor with The Vectre Corporation, a leading government affairs and grassroots advocacy firm in Virginia. David Skiles is also active in the Northern Virginia business community and serves on the Board of Directors for the Northern Virginia Chamber of Commerce. More information on The Vectre Corporation and David Skiles can be found at www.vectrecorp.com.