Open Source R&D Tax Credit? 196
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."
Its been thought of (Score:5, Informative)
Notice Al Gore was VP when this proposal was made.
OSS has already paid for itself here (Score:5, Informative)
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 .
Re:OSS has already paid for itself here (Score:1, Informative)
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.
Unless you're turning a profit on this endeavor or have a solid business plan describing how you plan to make money, you won't be smiling so much when the IRS audits you and disallows all of these deducations, classifying them as "hobby loss." Look it up.
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.
If your employer provides you with office space for your "regular day job", then your home office is not deductible, even if it's used solely in support of your regular job. The fact that you have a "regular day job" also greatly increases the chances that the IRS won't believe that your OSS "business" is a real business. Again, if you are taking a net loss for your OSS endeavor, you are in serious trouble. If your revenue is greater than your expenses, all should be well. Otherwise, get ready to be bent over by the IRS.
Re:Keep your freakin tax credit and give back my S (Score:3, Informative)
From the rest of your post, I get the impression that you are talking about Social Security. You should know that the term SSI is commonly used to refer to Supplemental Security Income, which is different and completely separate from social security.
http://www.ssa.gov/notices/supplemental-security-