R&D Tax Credit

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On September 8, 2023, the Internal Revenue Service (“IRS”) and Department of the Treasury (“Treasury”) released an advance version of Notice 2023-63. This Notice provides interim guidance intended to clarify the amortization and capitalization of specified research and experimental (“SRE”) expenditures under Section 174, amended by the Tax Cuts and Jobs Act (TCJA) in 2017. Proposed regulations provide rules consistent with the guidance for tax years ending after September 8, 2023. Until those regulations are provided, tax professionals can rely on interim guidance....

An Internal Revenue Service new release previews proposed changes to certain sections of Form 6765, Credit for Increasing Research Activities, commonly known as the Research & Development (R&D) tax credit. The IRS is soliciting feedback in the absence of the formal draft release process for form changes. The changes are in line with proposed changes that were previously announced in 2022. ...

While the Consolidated Appropriations Act, 2021 clarified that expenditures paid with forgiven Paycheck Protection Program loan proceeds are deductible for federal income tax, the relief may be short-lived for state income tax depending upon that state's conformity with the federal tax code and as such, may also reduce R&D Tax Credits....