RD 101: Research & Development Tax Credit Overview

Credit Hours: 1.0 · Program Level: Beginner · Field of Study: Taxes · Prerequisites: N/A · Advanced Preparation: None

This course will cover the fundamentals of the Research and Development (R&D) Tax Credit. including the history and recent developments, project qualifications, calculating the benefits, the chronology of a typical project and common issues. Each year hundreds of companies are taking advantage of the credit to increase their bottom line – it’s time to learn how you can benefit.


Objectives:

  • Provide a general overview of the R&D Tax Credit
  • Learn how to identify qualifying projects
  • Understand the various calculation methods and a sample calculation
  • Discuss the project implementation and issues to consider

I. Introduction

A. About your presenter

B. About KBKG

II. History and Qualification

A. R&D Credit Background

B. History

C. California Credit

D. Qualification

1. Qualified Activities
2. Non-qualified Activities
3. Qualifying Industries
4. Qualified Research Expenses
5. Qualifying Wages

III. Calculation

A. Fixed-base %

B. Start-up Company Fixed-base %

C. IRC 280C

1. Considerations

D. Example Calculation

E. Alternate Credit Calculations

1. Alternative Incremental Credit
2. Alternative Simplified Credit

IV. Project Implementation

A. Issues to Consider

B. Data Request

C. Project Chronology

V. Additional Issues

A. New Developments

1. Renewal
2. Housing Assistance Tax Act of 2008
3. Controlled Group
4. Consistency
5. Acquisitions/Dispositions
6. Gross Receipts Definition
7. Internal Use Software