R&D Credits to Offset Payroll Taxes in 2017 if you qualify
Under the December 2015 Path Act, Congress will provide additional R&D tax credit incentives for small business, as defined as a company with less than $5 million in receipts and no history of receipts longer than 5 years - stated another way - a company with...
Minnesota R&D Tax Credit – Update
Minnesota - R&D tax credit 2015 - Minnesota R&D tax credit form has been updated for tax year 2015. Form RD is attached to corporate and partnership returns to claim the R&D tax credit in Minnesota. On page 2 of the form, the state now requests information...
Colorado R&D Tax Credit Overview
Colorado R&D Increase Tax Credit - Overview of the R&D Rules R&D Tax Credit in Colorado - Colorado offers a 3% credit based on the increase of research and experimental expenditures in an enterprise zone. The increase is determined based on the average...
Texas R&D Tax Credit – Reinstated
Texas’ HB 800 R&D Tax Incentives Bill reinstated the state’s popular research and development tax credit (R&D Tax Credit), which had previously been eliminated in 2006. The new R&D incentive, effective for tax reports due on or after January 1st, 2014,...
Tougher Building Codes with Silver Lining – 45L Energy Efficient Home Tax Credit
As many states and counties implement tougher building codes, this can present challenges for developers. However there is a silver lining that many developers may not be aware of – the Section 45L Energy Efficient Home tax credit still looks back to the 2006 IECC...
2015 R&D Credit – Congress Makes R&D Tax Credit Permanent and R&D Incentives for Small Businesses
On Friday December 18, 2015, the President signed into law what normally would be a ‘tax extenders’ bill but with respect to the R&D tax credit, the credit was made permanent and no longer will expire every year or two. Companies can now rely on the R&D tax...
R&D Tax Credit – Field Attorney Advice (FAA) on Reasonable Compensation under Section 174
In a recent Field Attorney Advice (FAA) memo 20154501F, the IRS took a different approach to auditing this R&D tax credit claim. In this case, a CEO in charge of a group of companies was claimed at 60% qualified in supporting the companies’ R&D activities and...
Year End Guidance – R&D Tax Credit Software Documentation
The general rule for R&D tax credit documentation is found under IRC 6001 - a taxpayer must retain documentation in usable form to substantiate (in this case the R&D tax credit), and IRS typically wants to see evidence of the R&D in the form of...
Online Software – Latest IRS Thinking – Section 199 Domestic Production Activities Deduction
Currently the IRS is working on updating its guidance regarding online software which we expect some additional guidance early in 2016. Online software under Section 199 is generally not qualified for the Domestic Production Activities Deduction (Section 199...
Section 199 Domestic Production Deduction – New IRS Proposed Regulations – Contract Manufacturing
One area of dispute for many years under the Section 199 Domestic Production Activities Deduction was in situations where the taxpayer designs a product but a third party contract manufacturer actually produces the product under contract with the taxpayer. Prior to these new proposed regulations issued in August 2015, the benefits and burdens of ownership tests/criteria would be applied to determine which party can claim the Section 199 deduction.
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