R&D Tax Credit Extension Includes Taxpayer Friendly Changes

Posted by Jeffrey Feingold on 12.11.15

As you may have heard, the recently proposed bill from the House Ways and Means Chairman Kevin Brady on December 7, 2015, would extend and modify the R&D tax credit. These are all positive improvements for the R&D tax credit, particularly extending this credit to small businesses by including an AMT offset. These changes also increase the ASC rate.

What this means for you and your clients

Section 111 of this bill proposes the following changes and extension to the current Federal R&D Tax Credit:

  • To include the R&D tax credit for 2015 and 2016.
  • Raises the alternative simplified credit (ASC) rate for the R&D tax credit from 14 to 20 percent.
  • Small businesses may claim the credit against the alternative minimum tax (AMT) liability and payroll tax liability.

To read the entire bill, click here. The purpose of these tax credits are to help keep our economy competitive. If you have not reviewed the activities that could benefit from the R&D Tax Credit, click here to learn more about the credit qualifications.

Find out if you or your clients qualify. 

About Tax Point Advisors

Tax Point Advisors, America’s premier provider of Research and Development Tax Credit studies, comprises a trusted team of CPAs, engineers, and tax attorneys, providing the highest degree of professional service. We assist CPAs and their clients in identifying and capturing their maximum Federal Research & Development Tax Credits, as well as state R&D Tax Credits. We have the industry’s leading audit success rate, and an audit rate of under 5 percent. This is because we don’t just calculate R&D credits, we also conduct a thorough ON-SITE R&D review process for every study, then we write a bullet-proof, audit-defensible study report. Learn more about Tax Point Advisors’ R&D Tax Credit Services. 


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