3C Insider: Congress Is Back—Here’s What You Need to Know

Congress is back following its August break. Before leaving last month, they passed a major piece of legislation and are working on several more bills that small businesses should keep an eye on. Here’s what you need to know:

Inflation Reduction Act (IRA)

While there were several vital provisions in this bill that passed last month, it’s worth focusing on the doubling of the refundable R&D tax credit for small businesses from $250,000 to $500,000. The credit can be applied against payroll taxes and a wide variety of expenses, including product development and technology. The expanded R&D tax credit probably won’t show up on tax returns until 2024 since it can first be claimed for tax year 2023, but this could boost small businesses, particularly the startups that it can incentivize. 

Looking ahead, there are two bills coming down the line this fall that are worth watching. 

Continuing Resolution (CR)

First is the bill needed to fund the federal government, which must be passed by the fiscal year deadline of Sept. 30th to avert a government shutdown. While many believe a shutdown will be averted, that’s never a sure thing in Washington. With that said, small businesses should act now if they have any outstanding business with the government to take care of, such as applications for loans with the Small Business Administration, in order to mitigate against the potential for delays or interruptions if the worst does happen.  

American Innovation and Choice Online Act (AICOA) / S.2992

Second, some policymakers are still trying to pass legislation that would make digital tools harder to use and more expensive. As 3C research shows, the bill (if passed) would cost millions of small businesses an average of $100,000 each and about $500 billion overall during just the first five years. That’s why 3C and small business leaders have strenuously opposed it.  While the bill faces an uphill battle this year, we can’t let our guard down yet. 

No matter what happens with AICOA, we know the fight doesn’t end here. We’ll need to keep Congress’ attention squarely on small businesses’ needs and priorities. 

Rob Retzlaff 

Executive Director

3C Events Survey As a valued small business leader, we want to hear from you! We are conducting a short survey to gain insights on events and conferences small businesses attend. Have you attended events in the past? Do you plan to attend more in the future? We want to know! I am 3C – Small Business StoriesLawmakers need to see firsthand how digital tools make running a business easier. We would love for you to share an “I am 3C” vignette that reminds policymakers how important digital technologies are to your success. If you are interested in sharing your own story, simply let us know here. COI Energy Using Digital Tools To Protect Our Environment COI Energy’s CEO, SaLisa Berrien, founded a startup that helps small businesses and the environment. The app she created helps companies communicate with utilities about how they can best cut down on energy waste—and then allows them to earn sellable energy credits by acting on the suggestions they receive. SaLisa’s company relies on several digital services, including Google Cloud and Google Maps, to make this collaboration seamless. Moreover, her company’s rise was powered by digital tools like Google Business Profile to get going in the first place. It’s no surprise then that SaLisa is alarmed by congressional attempts to make the kind of integrated services she relies upon harder to use or more expensive. As she put it, “I don’t understand why some in Congress think it’s okay to pass legislation that will negatively impact the ecosystem overall. The standard line I always hear is that ‘big is bad,’ however  large tech companies have been extremely supportive for my small business on several fronts, and we cannot afford to lose access to their services.” Read the full story here.