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Why is the grand prize purse structured as an investment in the winners, rather than a cash prize?

by on May 03, 2021

The grand prize purse is structured as an investment for two reasons:

(1) It increases the tax efficiency of the award because a cash prize would be considered taxable income, and it shifts the taxation burden from the winning team to those funding the prize purse.

(2) It ensures that winning teams continue their innovation journey and are incentivized to continue scaling their technologies.

Questions? Email us at info@plasticprize.org

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