Federal Research Credit Extended through December 31, 2014 (HR 5771 and S 83)

UPDATE: President Obama has signed the bill.

Good News! The federal Research Credit has been extended through 2014! As one of its final acts, the 113th Congress passed the “Extenders Bill”, providing continuing support for the federal Investment Tax Credit for Increasing Research Activities (the §41 Research Credit) through the end of this year on December 16th, 2014. The President has indicated that he will sign the bill into law. As a result, this important incentive program will apply to all qualified research expenditures incurred through the end of 2014. The measure passed in the Senate by a broadly bipartisan 76 – 16 vote.

This means that all of the work you have done to develop new and improved products, processes and equipment over the past year can earn tax credits, and this means that there is more money for you!

The federal Research Credit program has been in place since 1981, when it was first codified under IRC Section 44f. It was retained in 1986 under the new code as IRC Section 41. This important incentive is intended to encourage manufacturers and software companies to expand their technological capabilities, thereby keeping engineering and manufacturing jobs here in the US.

This program is also intended to encourage firms from other countries to bring jobs here.

In order to qualify, companies must show that they have engaged in experimental development in an effort to overcome technological uncertainty regarding new product, process or equipment technology. Most importantly, the work must be done *here* in the US.

If you qualify, we can help you to secure your benefits. We will help you identify eligible projects, document the qualified work you have done, help you to calculate your eligible expenses, and defend your claims! Contact Tax Credit Advisors today. 

 

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