Posts Tagged ‘R&D’
Will Recent Changes to the Virginia Legislation Impact Your R&D Tax Credit Benefits?
At a glance The Full Story On April 11, 2024, Virginia Governor Glenn Youngkin signed a law modifying the state’s R&D tax credits, which allow taxpayers that engage in qualified R&D activities to offset income or bank franchise tax. Specifically, this new legislation decreases the credit cap and provides a new credit calculation and per-taxpayer…
Read MoreTax Relief Bill Restoring Domestic Section 174 R&D Expensing Faces Resistance in the Senate
At a glance The full story: The bipartisan tax relief bill (H.R. 7024 – The Tax Relief for American Families and Workers Act of 2024) that the House of Representatives passed on January 31, 2024 is currently stalled in the Senate. The $79 billion tax package, the product of the Democratic Senate Finance Committee Chairman…
Read MoreHouse Approves Tax Relief Bill, Clearing Path for Senate Action on Section 174 and ERC
At a glance The full story: In a resounding display of bipartisan support, the House voted 357 to 70 on January 31 to pass H.R. 7024, officially titled the Tax Relief for American Families and Workers Act of 2024. This legislative initiative mirrors the bipartisan tax agreement unveiled on January 16 by House Ways and…
Read MoreNew Guidance for Section 174 Expenditures Provides Additional Clarity
At a glance The full story Changes to Section 174 made by the Tax Cuts and Jobs Act of 2017 went into effect for the 2022 tax year, requiring companies to begin capitalizing and amortizing all specified research and experimental (SRE) expenditures that meet the Section 174-definition of research and experimentation. Official IRS guidance and…
Read MoreThe R&D Credit Tax Form is Getting a Major Update
At a glance The full story: On September 15, 2023, the IRS released a preview of its proposed changes to Form 6765, the tax form used to claim the Federal Research and Development (R&D) Tax Credit, as well as a request for feedback from taxpayers and tax professionals. Although the proposed form is not final,…
Read MoreNew IRS Guidance on Amortizing R&D Costs
At a glance Schedule a consultation with Aprio’s Section 174 and R&D Tax Credit Team today. The full story: On Friday, September 8, 2023, the IRS issued Notice 2023-63, providing long-awaited guidance on the capitalization and amortization of specified research or experimental (SRE) expenditures under Section 174. Although only interim guidance, the IRS has indicated…
Read MoreInnovating the R&D Credit
At a glance The full story: If you’re claiming the R&D Tax Credit, then your company likely prioritizes innovation and ingenuity. As R&D credit providers, we often see these clients become frustrated when faced with the tired, traditional accounting practices that are often applied in the calculation of the credit, which leads to meeting after…
Read MoreNew Bill Could Double the R&D Credit and Reverse New Amortization Requirements
At a glance The full story: After years of lobbying by tax professionals and affected companies to reverse the unfavorable changes to Section 174, there is a new possibility for relief. Senators Maggie Hassan and Todd Young introduced the American Innovation and Jobs Act on March 17, which, if passed, could reinstate the deduction of…
Read MoreWhen are U.S. Government Contractors Eligible for the R&D Tax Credit?
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…
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