4 Ways the Inflation Reduction Act is Great News for Your Small Businesses or Startup
Easily understand all the ways your small business or startup can benefit from the recently passed Inflation Reduction Act (IRA)
The recently passed, Inflation Reduction Act (IRA) is quite possibly the best thing to happen to small businesses and startups since e-commerce. In August 2022, the Senate, the House, and then President Biden all approved one of the biggest motions for small businesses and startups in the twenty-first century. Here are four ways your small business or startup can benefit:
. . . . . .
1. The IRA Doubles the R+D Tax Credit from $250,000 to $500,000
This bill doubles this crucial amount your small business or startup can get back via tax credits from Uncle Sam. R&D credits can be applied against payroll taxes and a slew of expenses, including, but not limited to, technology, engineering, product development, and support. You can see if you qualify here with our four-part test. MainStreet is the number one provider of R&D tax credit services for small businesses and startups, connect with us directly to help you get what you are rightfully owed. Get started now.
. . . . . .
2. The IRA Levels the Playing Field
According to, Administrator Isabella Casillas Guzman, head of the U.S. Small Business Administration (SBA), "the Inflation Reduction Act of 2022 makes urgent investments that will bring down costs, level the playing field, and open up historic opportunities for America's 33 million small businesses and innovative startups. The act applies a 15% minimum tax on megacorporations – many of which paid well under 10% in the past – this change will bring in more than $300 billion in tax revenue while maintaining current tax levels for small businesses.
. . . . . .
3. The IRS Can Now Concentrate on the Big Guys
A lot of this increased tax revenue will provide greater funding for the IRS. While this may sound scary at first, it’s actually great for small businesses. Due to limited resources, the IRS had been spending most of its time focused on smaller, more manageable enterprises, this new funding from the IRA will provide resources needed to start pursuing the bigger fish, like the top 150 megacorporations in the US – you know, the ones who paid less than 10% last year.
. . . . . .
4. Climate Change Initiatives Provide More Opportunites
The IRA also includes a number of climate change incentives such as $369 billion for renewable energy, including electric vehicles. While this may not seem like a direct win for small businesses, it is a huge business opportunity for climate-friendly startups and will provide extra funds in the pockets of customers searching for your services.
MainStreet is the number one provider of R&D tax credit services in the country. Connect with of our experts today. You can email us directly at [email protected] or get started by clicking below.
Or email us directly at [email protected]
