How the R&D Tax Credit Became a Corporate Subsidy

Episode 40 of The Tax Policy Podcast explores how the R&D tax credit evolved from a modest incentive for innovation into a massive corporate subsidy worth $15 billion annually. Lucas and Luna break down the credit's origins in 1981, its expansion through the PATH Act and TCJA, and how companies like Amazon and pharmaceutical giants have used it to slash tax bills. They examine the debate over whether the credit actually boosts innovation or just rewards routine product development, and why the 2022 amortization rule change is forcing startups to rethink R&D spending. A specific look at the numbers behind a policy that costs more than the Department of Energy's entire innovation budget. #RDTaxCredit #CorporateTax #Innovation #TCJA #PATHAct #TaxPolicy #Economics #Business #FexingoBusiness #BusinessPodcast #TaxPodcast #LucasAndLuna #Amazon #Startups #Amortization #TaxSubsidy #Section174 #FiscalPolicy Keep every episode free: buymeacoffee.com/fexingo