R&D Tax Credit Archives - Page 2 of 3

Sep 15, 2023 IRS Requests Feedback on Preview of Proposed Changes to Form 6756, Credit for Increasing Research Activities

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. ...

Jan 10, 2022 IRS Mandates Additional Requirements for R&D Tax Credit Refund Claims

The IRS announced more requirements are necessary for Research Credit Claims for Refunds. New rules are effective January 10, 2022 with a transition and grace period....

Mar 5, 2021 Brew Up Tax Savings with the R&D Tax Credit

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....

Jan 31, 2021 Despite PPP Loan Forgiveness, State Tax Conformity Rules May Reduce R&D Tax Credits

Nov 11, 2020 Downsides to the COVID-19 Tax Relief Legislation That Could Impact the R&D Tax Credit

NOL rules frequently change and are oftentimes not favorable to a taxpayer. Prior to the CARES Act, the TCJA would not allow NOLs to be carried back and only 80% of NOL carryforwards would be allowed to offset taxable income effective for tax years commencing January 1, 2018....

May 9, 2020 CARES Act Provides Unique Opportunities for the R&D Tax Credit

The CARES Act makes taxpayer-friendly changes to NOL carryforward rules commencing January 1, 2018....

Sep 10, 2019 The R&D Tax Credit for the Construction Industry – Cementing a Favorable Tax Incentive

While many tax breaks have been reduced or expired, Research and Development (R&D) tax credit has been in existence for over 30 years and recently made permanent. The R&D tax credit has generated over $12 billion dollars annually for companies engaging in research activities. While most Fortune 500 firms claim it, many in the construction industry erroneously believe they do not qualify. In fact, only about ten percent of eligible businesses actually take the R&D tax credit....

Jun 12, 2019 The R&D Tax Credit for Manufacturers – Don’t Scrap the Benefit!

While many manufacturing tax breaks have been reduced or have expired, one tax incentive has been in existence for over 30 years and recently made permanent. The Research and Development (R&D) Tax Credit, a dollar-for-dollar tax reduction, has generated over $12 billion dollars annually for companies engaging in research activities....

Jan 29, 2019 New Tax Court Case Confirms Burden is on Taxpayer to Substantiate Base Period for the IRC §41 Research Credit

A recent court case denied a taxpayer the Research Credit under IRC §41 since it could not substantiate proper use of the “start-up” base period to calculate its credit rather than use of the 1984-1988 base period. IRC §41 permits a taxpayer to use a base period of either 1984-1988 or, if certain criteria are met, an alternative base period intended to make the credit available to “start-up” companies that were not in business from 1984-1988....

Mar 13, 2018 What Does the Tax Cuts and Jobs Act of 2017 (“TCJA”) Mean for the R&D Tax Credit?

While many deductions and credits were repealed by TCJA, the final law preserved the Research and Development (“R&D”) tax credit, which was previously made permanent in the Protecting Americans against Tax Hikes (“PATH”) Act of 2015....