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Which of the following statements is TRUE regarding the the Research and Development (R&D) tax credit, a. The credit is calcu
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Answer : "D" : Qualified small businesses can use the research and development credit to offset FICA employer portion of payroll tax.

Background : Research and Development tax credit is one of the incentives awarded by the government to companies in the United States to invest more in Research and Development. It is for business of all sizes and not just for large organizations with big research labs. Many companies are eligible for this credit.

Also, as per the tax laws, startups and small businesses may qualify for up to $1.25 million (or $250,000 each year for up to five years) of the R&D Tax Credit to offset the Federal Insurance Contributions Act (FICA) portion of their annual payroll taxes. Hence the answer is "D".

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