Treasury Eyes Guidance to Address US R&D, Global Tax Interaction

The US wants to change how its research and development credit is accounted for under the global minimum tax rules through OECD administrative guidance, following business concerns the incentive will cause companies to fall under the levy’s 15% threshold.

Scott Levine, acting deputy assistant secretary for international affairs at the Treasury Department, reiterated Tuesday that preserving the R&D credit—a major tax benefit for US companies—is a “top priority” for the Biden administration in OECD negotiations.

“I think we will ultimately try to get this fixed with administrative guidance, if possible. And if not, we’ll revert to ...