The Charlotte Regional Business Alliance® is leading a coalition of 10 chambers of commerce and business organizations that are advocating for changes to a federal tax policy that is hampering innovation and burdening businesses across the state.
Dubbed the “Innovation Tax,” the current version of Section 174 is dramatically reducing the ability of entrepreneurs to develop new products and processes. The coalition, representing businesses throughout North Carolina, authored a letter to federal legislators calling for immediate expensing of research and development costs. The organizations voiced support for a change in tax policy that would allow businesses to realize the tax benefit of their R&D activity in a timely way.
“Businesses across North Carolina thrive because of the strong business climate in the state,” Joe Bost, chief advocacy officer at the CLT Alliance, said. “This critical change to the tax code will help innovative businesses continue to develop cutting-edge technology and create new jobs right here in our communities.”
Abhishek Mehta, co-founder, chairman & CEO of Charlotte-based tech company Tresata, talked about the vital need for this policy change.
“R&D is the lifeblood for innovation in our economy,” Mehta said. “An ability to incentivize it with progressive fiscal and tax policy is a competitive advantage for our country.”
The CLT Alliance sent the letter to North Carolina’s delegation of lawmakers, including Sens. Ted Budd and Thom Tillis, who are co-sponsors of legislation that would allow for the immediate expensing of R&D costs. The policy change is on track to be included in a larger tax package being negotiated between the House and Senate.
Organizations supporting this policy include:
- Charlotte Regional Business Alliance®
- Asheville Area Chamber of Commerce
- The Chamber, Leading Business in Cabarrus
- The Chamber of Catawba County
- The Chamber for a Greater Chapel Hill-Carrboro
- Greater Durham Chamber of Commerce
- Greensboro Chamber of Commerce
- Greenville-Pitt County Chamber of Commerce
- Wilmington Chamber of Commerce
- Greater Winston-Salem, Inc.
A copy of one of the letters of support can be found here.
