Today we are covering the latest news and guidance regarding R&D tax credits. Innovation is percolating through all areas of the economy, especially with companies pivoting during the pandemic and later as the economy has recovered. Since 1981, the federal income tax credit for increasing research activities (“R&D credit”) has been a vehicle for the federal government and many states to reward companies for investing time and money into innovation and experimentation. Addressing technical engineering, scientific or computer science uncertainties is the core activity that yields R&D tax credits. Tax Beat hosts Brooks and Sarah interview leaders from the Firm’s Tax Credits and Incentives Advisory practice for their insights into new IRS documentation provisions, required capitalization of expenditures starting this year, a legislative outlook, and the value of R&D credits for all size businesses.   

Topics discussed include: 

•   4:21 – The big picture for R&D credits
•   6:19 – Importance of R&D credits to industry
•   8:38 – Middle market companies taking advantage of R&D credits
•   9:55 – New IRS documentation requirements for tax credit refund claims
• 17:36 – Required capitalization of R&D expenditures
• 20:49 - Trends and opportunities