Roundtable: Accounting and R&D Tax Changes Impacting Tech Startups (NACD – Triangle Chapter)
Breakfast and networking begin at 7:30 a.m., with the program starting at 8 a.m.
Startups that rely on federal grants for research and development are facing a dilemma, thanks to recent changes in the tax code that require them to amortize these expenses. Instead of using grants from the NIH, DoD or DoE to get their technology to a proof of concept, companies now have to consider this grant money as income for tax purposes – even though the startups may be years away from generating revenue.
The impact on many early stage biotech, med device, healthcare IT and cleantech companies – the lifeblood of the Triangle’s vibrant startup economy – has been to wipe out cash reserves, risk tax penalties, and introduce an additional element of uncertainty in a high-risk venture.
Join Jeremy Berger, Director, Federal Tax Specialty, at Forvis as he reviews the changes to the tax code and leads a peer-to-peer roundtable discussion on how companies, founders and investors are coping with this dramatic turn of events. The discussion will include:
• A review of changes to the federal tax code’s section 174 and implications for companies that rely on government grants
• What is meant by “phantom income” and its reporting requirements
• The status of current efforts to reverse the policy and best strategies to employ in 2024
This program is a “must attend” for board members and CEOs of innovative pre-revenue startups, university spinouts and recipients of SBIR and STTR grants.
Breakfast and networking begin at 7:30 a.m., with the program starting at 8 a.m. It is offered free of charge to NACD members and invited guests.
