When it comes to the United States tax code, many businesses throw their collected hands up in the air and say, "I give." This is even truer when it comes to R&D tax credits. For many businesses, they simply believe the system is too complicated for us to claim R&D tax credits. While the ins and outs of tax law can take some time to understand, they are not so complicated that they should not be taken advantage of.
Tax Point Advisors applauds current efforts by Washington legislators to enact the Tax Relief for American Families and Workers Act of 2024.
In 2022, the Inflation Reduction Act (IRA) was signed into law. It's a 10-year plan designed to improve a range of tax laws, upgrade technology and simplify the filing of tax returns. Most media coverage surrounding the signed Inflation Reduction Act (IRA) focused on its health care and climate change sections. However, the measure also improves a frequently disregarded federal tax credit for qualified small businesses. The Inflation Reduction Act of 2022 ("IRA") has increased and modified the qualified small business payroll tax credit for increasing R&D activities.
In today's competitive business landscape, it is crucial for companies to stay ahead of the curve and maximize their potential. One way to do so is by taking advantage of Oregon's 2024 R&D Tax Credits. In 2023 Oregon introduced a new refundable Research and Development (R&D) tax credit (HB2009), for its state taxpayers, to encourage them for qualifying work performed on semiconductors. Although the timeline to apply for these tax credits has passed for the current tax year (December 1, 2023), now is the time to start gathering your information and applying for the credit for the upcoming 2024 tax year.
The R&D Tax Credit Ohio is available annually and is based upon qualified research expenses in Ohio allowed under section (s.) 41 of the Internal Revenue Code (IRC). The Ohio Research and Development Investment Tax Credit, which is authorized within Section 5751.51 of the Ohio Revised Code, is a nonrefundable credit against the Commercial Activity Tax (CAT). Qualifying expenses fit into two categories: in-house research expenses and contracted research expenses.
Several changes to U.S. tax laws over the past couple of years were created to benefit businesses. Your tax advisor can show you ways to maximize these benefits and minimize your tax liability for 2023.
Going green has been viewed by many as the way to pull us out of economic problems, to create new jobs, to compete in a global market, and to save the planet. This has led the U.S. government to offer expanded tax credits for green building and green technology.
Late 2023 and it is abundantly clear that Congress will not be repealing nor deferring anything relating to the Tax Cuts and Jobs Act (“TCJA”) concerning the new regulations requiring the capitalization and amortization of Section 174 costs any time soon. For tax year 2022 and most likely for all of tax year 2023, there doesn’t appear to be any chance of this law changing any time soon.
Think about it—only one out of every 20 eligible businesses takes advantage of the research and development (R&D) tax credit. That’s because many business owners don’t realize that their industry is ripe with eligible activities. While many industries have qualifying activities, an R&D tax credit study can help you determine which activities qualify.
Like the federal government, the state of Arizona provides a generous research and development (R&D) tax credit as an incentive to those who conduct R&D activities within the state. In Arizona, the R&D incentive provides an income tax credit for increased R&D activity within the state. Companies may also be eligible for a “basic research” credit if their payments made in cash to a qualified university or scientific research organization for research conducted in Arizona exceed a base period amount.
