Open Source R&D Tax Credit?

Dan writes "The Center for American Progress is proposing an R&D tax credit for open source development." From the article: "Subsidizing open source software development can also be justified on grounds of economic efficiency. Open source software development enhances the ability of other developers to create new products. It also enhances the development and dissemination of knowledge and ideas more broadly. Since the benefits to the broader software development community and the economy as a whole go well beyond the users of an individual software product, a policy that subsidizes open source development would increase economic efficiency."

Comments

Built In Tax Break

[rtb144]

Most open source software comes with a built-in tax break. No income, no income tax.

Its been thought of

[akb]

http://public.resource.org/main.html

Notice Al Gore was VP when this proposal was made.

Re:Center for American Progress

[MAXOMENOS]

Well, the center of it is probably somewhere over the ocean, since the ass-end is in the White House.

OSS has already paid for itself here

[hacker]

As an OSS developer, I can say that working on Open Source code/projects has already paid for itself in tax deductions many times over in the last decade.

Those donations you get from the "Paypal" button on your project homepage? Deductable as gifts, not income.

Those hard drives you upgraded to house your OSS code through RCS on a RAID system? Deductable as a business expense.

The space in your house used to develop/work on that OSS code? Deductable as your "workspace".

In my case, I also host and house dozens of projects for the OSS community, mailing lists, web space, torrent trackers, and lots of other things.

That broadband bill? Deductable. Power to keep servers running 24x7? Deductable.

I also have a "regular day job", and I work at the home office, so that too, is deductable, since it is a dedicated section of the house specifically for that.

Being a long-time OSS developer and supporter has definitely paid for itself many times over in deductions alone, not to mention the Google ad revenue that helps fund the websites I maintain and support, out-of-pocket upgrades to storage, servers, etc.

Having a clueful CPA? Priceless .

Stupid and pointless.

[jcr]

Just ask anyone who's tried to organize a 501 (c)(3) corporation. We do NOT need IRS involved in deciding what is or isn't open-source software.

Lobbying for little tax breaks here and there simply perpetuates the problems of the tax system being used as an instrument of policy.

There's a better way.

-jcr