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...
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...
Despite PPP Loan Forgiveness, State Tax Conformity Rules May Reduce R&D Tax Credits
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...
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...
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...
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...
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...
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...
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...