The PATH Act, enacted at the end of 2015, not only made the R&D tax credit permanent but also included two key changes to the R&D tax credit effective in 2016 and after. These changes can enormously benefit small businesses, including business startups. Starting in 2016, small businesses may take the R&D tax credit against their AMT and a qualified small business may also take the R&D tax credit against its payroll taxes for up to five years. This program will help tax practitioners advise their small business clients with regard to these two tax saving opportunities.
- Overview of the R&D credit, including eligible expenditures and calculation
- Opportunity to take the R&D credit against payroll taxes
- Opportunity to take the R&D credit against the AMT
- What kind of research is eligible for the R&D credit?
- What is a qualified small business, for purposes of the ability to use the R&D credit to offset payroll tax?
- Explain how the R&D credit applies to small businesses
- Explain how and when the R&D credit can be used against payroll tax
Any tax practitioner who will be advising clients regarding the potential application of the R&D credit
Basic knowledge of individual and business income tax rules taxation