Section 174 Update (2023 and 2024 Tax Years) – What CPAs have to do to Capitalize R&D Expenditures
The IRS released an advance version of Notice 2023-63 providing interim guidance intended to clarify the application of section 174, as amended by the “Tax Cuts and Jobs Act” (TCJA). The notice includes guidance addressing capitalization and amortization of specified research or experimental (SRE) expenditures under section 174, as amended. Based on our review and consultantion with […]
New Changes to R&D Tax Credit in 2023
2023 brought several changes to the R&D tax credit and its related provisions. As many of you already know, the R&D tax credit can be used to offset both INCOME taxes and/or PAYROLL taxes depending on your company’s eligibility status. Let’s start with the change that would be relevant to your entity’s income taxes. Some […]
What is Research and Development Tax Credit?
The history of the R&D tax credit, also referred to as the Research Credit, started almost 35 years ago to allow businesses that leverage science and technology in their product or process development to reduce corporate income tax liabilities. But it wasn’t until recently with the passage of the Tax Cuts and Jobs Act (TCJA) in 2017 that this lucrative tax incentive credit became relevant […]