When are U.S. Government Contractors Eligible for the R&D Tax Credit?

Front facing view of the US capital building

At a glance The full story: Many companies often incorrectly assume that any work performed as part of the scope of a government contract is disqualified from the R&D Tax Credit because it is government-funded. In actuality, many of the research and development activities involved through the performance on government contracts can qualify, meaning government…

Read More

How Changes to R&D Deductions will Impact your Tax Burden

Factory floor interior

At a glance The main takeaway: Changes to Section 174 require taxpayers to capitalize and amortize all R&D costs, which could significantly increase companies’ tax burdens. Impact on your business: Companies that have been consistently investing in R&D can expect to pay more in taxes, while companies previously in losses could be at risk of…

Read More

It’s Official: Software Development Included in Tax Definition of R&D

At a glance The bad news: Changes to the tax code recently went into effect requiring all R&D costs to be capitalized and amortized, including software development. The good news: These changes provide more clarity regarding the eligibility to classify all internally-developed software as R&D costs, further strengthening the position to include certain software development…

Read More