KBKG Tax Alert: Arizona Introduces New Research & Development Calculation Method for Tax Year 2023 By Elise Rhee| Director, R&D Tax Credits Effective for the tax year ended 2023, Arizona has implemented a new calculation method, mirroring the federal Alternative Simplified Calculation (ASC) approach. Notably, if a taxpayer hasn’t incurred qualified research expenses (QREs) in … Read More
KBKG Tax Alert: Virginia Research and Development Expenses Tax Credits Amended By Ian Williams| Principal, R&D Tax Credits Effective July 2024, Virginia’s Governor Youngkin signed legislation that impacts Virginia’s major research and development expenses tax credit. The changes include a decreased major R&D expenses cap, a new credit calculation method, and an increased R&D expenses … Read More
KBKG Tax Insight: Michigan’s Senate Enacts R&D Tax Credit By Michael Maroney | Director, R&D Tax Credits On March 19, 2024, Michigan’s Senate passed legislation enacting an R&D credit, the first of its kind since the R&D credit expired over a decade ago. The Senate passed HB 5100, which the Democrat-led Michigan House passed on … Read More
KBKG Tax Alert: Research and Development Expensing (IRC Section 174) Still has Bipartisan Support During a March 21 hearing on President Biden’s Fiscal 2025 budget, members of the Senate Finance Committee urged Treasury Secretary Janet Yellen to remember federal research and development (R&D) tax incentives to improve the United States’ economic competitiveness. The R&D tax … Read More
KBKG Tax Alert: Update on the 174 Capitalization Fix, 2024 Tax Relief Act The American Families and Workers Act of 2024 (“the Act”), aimed at reinstating the ability to deduct R&D expenditures, extending bonus depreciation, and expanding the Child Tax Credit has hit a significant roadblock in the Senate. Despite its bipartisan passage in the … Read More
Understanding R&D Tax Credits for Biotech, Bioscience, and Pharma Research and development (R&D) is a huge part of the biotech, bioscience and pharmaceutical industries. Biotech, bioscience, and pharmaceutical companies operate on the forefront of innovation, constantly seeking new solutions to complex problems through cutting-edge technology and scientific research. R&D is the lifeblood of these industries, … Read More
R&D Tax Credits for Robotics Industry If you run a small business, large corporation, or a startup, business payroll taxes could take a big bite out of your profitability. Companies in the robotics industry can lower their tax burden with the research and development (R&D) tax credit. This tax credit can help businesses developing exciting innovations … Read More
Common Misconceptions About R&D Tax Credits: Debunking Myths and Clearing Up Confusion The R&D credit refers to tax-saving opportunities for companies that invest in research and development. The R&D tax credit incentivizes businesses of all sizes to develop or improve products and processes within their industry. Unfortunately, many misconceptions may unnecessarily stop a company from claiming the … Read More
Using the R&D Tax Credit to Join the EV Market The production and sale of electric vehicles (EVs) are on the rise, with more consumers switching to this eco-friendly option each year. The EV market has witnessed substantial growth, driven by factors such as increasing environmental awareness, government incentives, advancements in battery technology, and improvements … Read More
Understanding R&D Tax Credits for Forest Products | KBKG Companies in the forest products industry increasingly rely on research and development initiatives to optimize manufacturing, increase revenue, and create a competitive edge. Even small and medium-sized forestry businesses may qualify for valuable tax incentives related to R&D. Unfortunately, the U.S. Chamber of Commerce estimates that … Read More