With the enactment of the tax reform law in December 2017, TechNet is focused on ensuring it is properly implemented to help promote economic growth, job creation, and opportunities in the tech sector. As Congress continues addressing future changes to the tax code, TechNet supports the following policies:
- Defending the legal right of U.S. corporations to structure global business operations consistent with relevant legal requirements.
- Enact taxpayer protection legislation that codifies a taxpayer’s ability to seek resolution through the Internal Revenue Service’s (IRS) Office of Appeals before being forced to litigate in court, and prohibit the IRS from hiring outside lawyers to participate and take testimony in a tax audit.
- The continued prohibition of federal internet access taxes.
- Promoting more stock ownership opportunities for workers at startups and other employers by allowing them to defer the tax associated with the exercise of their personal equity until they sell the underlying shares and thus have the cash to pay the tax, instead of taxing these options upon vesting.
- Preserving the ability to deduct Research and Development (R&D) expenses in the year incurred.
- Improving the 2017 tax law’s base erosion and anti-abuse tax (BEAT) provision by allowing the add-back of the R&D Tax Credit for regular tax purposes. Current law requires that, beginning in 2026, regular tax liability be reduced by the R&D Tax Credit, which could result in many innovative companies effectively losing all or a substantial portion of their R&D credits.
- The repatriation of U.S. intellectual property to spur U.S.-based research and development and innovation that grow the economy and manufacturing base.
- The permanent exclusion of federal and state capital gains taxes on investments in startup businesses that are held for more than five years.
- Innovative tax credits that can apply to other tax requirements beyond corporate income tax obligations.
- Simplified tax requirements for mobile workers.
- Ensuring that tax policies affecting the gig and sharing economy help promote economic opportunities, provide clarity, do not impose significant administrative burdens for job creators, and recognize the unique differences that exist among the business models of innovators operating in this growing segment of the economy.