How the Research and Development Tax Credit Drives Innovation

In this episode of The Tax Policy Podcast, Lucas and Luna explore the Research and Development tax credit—a policy that has quietly shaped corporate innovation since 1981. They break down how the credit works, why it was designed to encourage domestic R&D spending, and how companies like pharmaceutical giant Pfizer rely on it to offset the massive costs of drug development. The hosts also discuss the recent 2022 changes that allow startups to use the credit against payroll taxes, and the broader debate over whether the credit genuinely boosts innovation or simply subsidizes what companies would do anyway. With a focus on the numbers—roughly $15 billion in annual claims—this episode offers a concrete look at one of the most influential yet underdiscussed tax provisions in the US code. #TaxPolicy #Economics #Innovation #RAndD #TaxCredit #Pfizer #Startups #DrugDevelopment #Research #FiscalPolicy #CorporateTax #EconomicGrowth #Patent #QualifiedResearchExpenses #PolicyDebate #FexingoBusiness #BusinessPodcast #TaxReform Keep every episode free: buymeacoffee.com/fexingo