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Stock impact report

IRS Grants Tech, Pharma a Tax Break Boost From Trump Deduction [Yahoo! Finance Canada]

Meta Platforms, Inc. - Class A (META) 
The new guidance doesn't necessarily mean companies can avoid triggering the corporate minimum tax if they claim the backlog of deductions, yet it does allow them to reduce their tax burden by subtracting old domestic R&D investments from their income. The IRS guidance is a huge win for research-intensive industries, including technology, pharmaceuticals and manufacturing. Without it, some companies found the retroactive tax break was so generous that it triggered the corporate alternative minimum tax, which applies to businesses with at least $1 billion in annual profits. Charles Crain, vice president of policy for the National Association of Manufacturers, praised the decision, saying in a statement that it would “supercharge” private sector investment in research and development. Yet the move quickly came under criticism from Democrats, who had warned Treasury against issuing the guidance. They have said the limitations that the 15% minimum tax put on the retroactive break w Show less Read more
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