The 179D Tax Deduction offers significant financial rewards for designers who reach specific energy-efficiency benchmarks defined by the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) on their designs of government-owned or tax-exempt buildings. ASHRAE 90.1 determines the energy-efficiency criteria that designers need to meet to reap the benefits of 179D. Currently, the required … Read More
Thought Leadership by Ian Williams, Principal | KBKG As mentioned in KBKG’s last blog post, the IRS provided an update in June surrounding the Employee Retention Credit (ERC), noting that it was planning to disallow high-risk claims and begin catching up on processing low-risk claims this summer. While the IRS did not provide clarity on … Read More
By Jonathan Tucker | Principal, Research & Development Tax Credits In a significant move after months of waiting, the Senate voted on the highly anticipated tax relief for American Families and Workers Act, aimed at easing the financial burden on millions of Americans. Championed by Senate Majority Leader Chuck Schumer to bring a vote in … Read More
By Eddie Price & Amar Patel | Principals – Cost Segregation After years of 100% bonus depreciation, rates have recently fallen to 80% for 2023 and 60% for 2024, which has motivated some real estate investors to look for additional strategies to offset taxable income. Section 179 of the tax code offers taxpayers the opportunity … Read More
By Jonathan Tucker | Principal, Research & Development Tax Credits With the enactment of the Tax Cuts and Jobs Act (TCJA) of 2017, significant changes were made to the Internal Revenue Code (IRC), notably to IRC 174. Starting in the tax year 2022, businesses can no longer fully expense their research and experimental (R&E) costs … Read More
By Amar Patel, CPA, CSSP | Principal – Cost Segregation The Internal Revenue Service (IRS) recently published an article issuing a warning about a new scam involving the misrepresentation of rules surrounding the transferability of clean energy tax credits under the Inflation Reduction Act (IRA). KBKG Insight: The market for transferable clean energy credits, notably … Read More
By Jonathan Tucker | Principal, Research & Development Tax Credits On June 21, 2024, the IRS released an updated draft form 6765 – Credit for Increasing Research Activities, the tax form taxpayers must file with their tax returns to claim the R&D tax credit. This revised draft provides much-needed relief for taxpayers by reducing the … Read More
Thought Leadership by Ian Williams, Principal | KBKG On June 19, the IRS issued a much-needed update on the status of ERC processing. KBKG has summarized the key points from their news release below. Post-Moratorium Claims: The moratorium on the processing of claims filed after 9/14/23 is still in effect. A specific resumption date has … Read More
By Jonathan Tucker | Principal, Research & Development Tax Credits The IRS issued new guidance around amending for R&D tax credit refunds postmarked as of June 18, 2024. This guidance reduces the documentation requirement to be submitted for amending by removing two previously required items. KBKG Insight: With just three documents needed to submit the … Read More
By Emily Flemmer | Manager, Research & Development Tax Credits In the case of Meyer, Borgman & Johnson, Inc. v. Commissioner No. 23-1523 (8th Cir. May 6, 2024), the U.S. Court of Appeals for the Eighth Circuit upheld the Tax Court’s decision denying research tax credits to a structural engineering firm because the taxpayer’s research … Read More