The state of New Jersey allows a qualified business enterprise to claim a state R&D tax credit for these qualified research expenses.
With all the drama and complexities of 2020, the closing months of the year are at least starting to show some light of clarity and new beginnings. From the announcement of potential lifesaving vaccines to, of all things, new announcements for the deductibility of Payroll Protection Plan funding, taxpayers now can sigh a little relief from a difficult year.
Massachusetts companies can now calculate their Massachusetts research credit using a new simplified method, opening up opportunities to companies that did not meet documentation requirements previously or were obligated to use the maximum amount of 16% per code section 830 CMR 63.38M.1(5)(a)1.
Some taxpayers may have a reduced 2019 R&D tax credit as the result of a negative impact of the Payroll Protection Plan loan program, an impact unintended by Congress.
On July 23, U.S. Rep. Jackie Walorski (R-IN) along with cosponsor Rep. Jodey Arrington (R-TX) sponsored H.R. 7766. This legislation would double the traditional research and development tax credits, and make it easier for small businesses and start ups to access the tax credit incentive.
Any company producing new antibiotics or infection fighting equipment, utilized to combat COVID-19 are certainly at the forefront of all medical research being conducted in the U.S. currently. These lifesaving efforts can be supported by the R&D tax credits.
Manufacturing companies are responding by pivoting their operations to produce products to help in the fight against COVID-19.
CPAs: Are your clients missing the opportunity to claim valuable tax credits?
During these times of uncertainty Tax Point Advisors is continuing to offer their expert tax advice via tele-services.
A significant but often overlooked financial incentive to energy efficient builders and contractors is the 45L tax credit. This tax credit is for owner occupied or rental dwelling buildings that meet certain energy saving standards.
