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GOP tax plan shuts out violent video game developers from R&D tax cuts

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One tax plan proposed by congressional Republicans would seek to exclude developers of violent videos in a permanent research and development tax cut aimed at American manufactures, according to a report today from VG 24/7.

The Washington Examiner reports that the House Ways and Means Committee is seeking a tax cut for manufacturers in a proposed tax reform bill, which according to the 19-page executive summary would benefit a spectrum of industries.

The bill calls for “an improved, permanent R&D tax credit, finally giving American manufacturers the certainty they need to compete against their foreign competition who have long had permanent R&D incentives,” except if a studio produces violent video games.

Ironically, the page explicitly singling out the makers of violent video games is followed by the explanation that the bill “stops the practice of using the tax code to pick winners and losers based on political power rather than economic merit.”

According to the report, the tax credit wouldn’t apply to many of the video game developers in the United States, and probably less of the major publishers –– Electronic Arts, Activision, Rockstar, etc.

The tax bill could prove to be a large dent in the video game development industry in the U.S., on in which is already losing talented developers to studios in Canada and elsewhere.

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