For many companies, the federal research and development (R&D) tax credit has been a valuable tax planning opportunity since it became part of the tax code in 1981. The R&D tax credit provides a dollar-for-dollar reduction in tax liability, allowing companies of all sizes to reduce their taxes and increase cash flow, yet the R&D tax credit is still often overlooked. The traditional definition of R&D conjures up images of lab coats, beakers and test tubes, and high-tech or pharmaceutical types of companies. The reality is that most companies can qualify for R&D tax credits for things they do every day.
The PATH Act, enacted in December 2015, has made significant changes in the R&D credit arena:
- The R&D credit is now a permanent credit.
- For taxpayers with average annual gross receipts of $50,000,000 or less for the prior three years, the R&D credit now offsets both the regular tax and the Alternative Minimum Tax (AMT).
- Start-up companies may be eligible to offset payroll taxes with the R&D credit.
In addition, there have been many favorable changes to IRS regulations and court cases over the past few years that have expanded the definitions of R&D activities and have clarified documentation required to be maintained by companies that claim the credit. During this webinar, you will gain a solid understanding of the R&D tax credit as well as the enhanced opportunities for your company to qualify.
- Changes made by the PATH Act and how this will benefit your company.
- A close-up look at the types of activities that may qualify for the credit, including day-to-day activities.
- An update on recent developments that make it easier to amend tax returns to claim the credit and take advantage of benefits possibly missed in prior years.
- State versions of the federal tax credit that are continually increasing the benefit of the credit.
Speaker: Valerie Fedie
Time: 1:00 PM; Room 4