40 likes | 206 Vues
Tax Credits Group Presents :. Research Tax Credit: The Basics. Michael A. Krajcer, JD, CPA Tax Credits Group, LLC Office: (440) 331-0714 Mobile: (216) 308-1564. Research Tax Credit. Benefit: Federal Income Tax credit equal to 14% of the R&D expenditures that exceed a base amount.
E N D
Tax Credits Group Presents: Research Tax Credit: The Basics Michael A. Krajcer, JD, CPA Tax Credits Group, LLC Office: (440) 331-0714 Mobile: (216) 308-1564
Research Tax Credit • Benefit: • Federal Income Tax credit equal to 14% of the R&D expenditures that exceed a base amount. • State Credit – depends which state the activity takes place in. • Ohio – credit equals 7% of the qualifying expenditures that exceed a base amount • Applied against the CAT tax
Research Tax Credit • Qualifying Activity – Research and development intended to create a new or improved: • Product • Process • Computer Software • Invention • Technique • Formula • Qualifying Costs: • Wages • Supplies • Contract Research (at 65%)
Research Tax Credit • Requirements: • Document the project met the “Four-part Test”: • R&D was for a Permitted Purpose • Developmental Uncertainty existed at the outset of the project • The R&D utilized a Process of Experimentation • The experimentation relied on Technical Information