The House Ways and Means Committee released details on in its long-awaited tax reform bill, which offers a variety of tax benefits to businesses… while excluding video game makers from R&D tax credits, according to a Washington Examiner report. According to the paper, on page 19 of the Committee's executive summary for the proposed bill, an improved and permanent research and development tax credit is mentioned that targets a number of sectors including manufacturers, software creators, food producers, and more.
The summary calls for "an improved, permanent R&D tax credit, finally giving American manufacturers the certainty they need to compete against their foreign competition who have long had permanent R&D incentives."
So far, so good… but on page 24 of the same summary that the tax credit is specifically not available for "violent video game makers," offering a provision for "preventing makers of violent video games from qualifying for the R&D tax credit," while on the next page promising that the bill "stops the practice of using the tax code to pick winners and losers based on political power rather than economic merit."
The only good news about this proposed tax credit that excludes an entire industry? Speaker of the House John Boehner (R-Ohio) says it is unlikely that the bill will be taken up this legislative session.
Source: Washington Examiner