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Recent Law Changes Create Greater R&D Tax Credit Opportunities for Manufacturers

Recent Law Changes Create Greater R&D Tax Credit Opportunities for Manufacturers

May 17, 2016

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This webinar was recorded on May 16, 2016. Click the Download button to watch the recording and to view the presentation slides.  

For many manufacturers, the federal research and development (R&D) tax credit has been a valuable tax planning opportunity since it became part of the tax code in 1981. Providing a dollar-for-dollar reduction in tax liability, the tax credit allows manufacturers of all sizes to reduce their taxes and increase cash flow, yet it is still often overlooked.

Most manufacturers can qualify for R&D tax credits for things they do every day. And now, the PATH Act, enacted in December 2015, has made significant changes in the R&D credit arena and significantly increases the opportunity:

  • The R&D credit is now a permanent credit.
  • For taxpayers with average annual gross receipts of $50,000,000 or less for the prior three years, the R&D credit now offsets both the regular tax and the Alternative Minimum Tax (AMT).
  • Start-up companies may be eligible to offset payroll taxes with the R&D credit.

In addition, there have been many favorable changes to IRS regulations and court cases over the past few years that have expanded the definitions of R&D activities and have clarified documentation required to be maintained by companies that claim the credit.

This recorded webinar will help you gain a solid understanding of the R&D tax credit as well as the enhanced opportunities for your company to qualify.

Download Webinar (PDF 878kB, MP4 45993kB)

Author(s)

Christopher Blaylock
Christopher R. Blaylock, CPA
Partner
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Scott Schumacher
Scott R. Schumacher, CPA, MST
Partner
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