By Michael Maroney | Director, Research & Development Tax Credits The Phoenix Design Group, Inc. v. Commissioner decision issued on December 23, 2024, is an important reminder of the hurdles faced when substantiating research activities for the R&D tax credit. The court denied all research credits claimed by Phoenix Design Group (PDG), a multidisciplinary engineering … Read More
Tax Insight
KBKG Tax Insight: Michigan R&D Tax Credit Now Available
By Michael Maroney | Director, Research & Development Tax Credits On January 13, 2025, Michigan Governor Gretchen Whitmer signed HBs 5099-5102 and 4368 to establish the Innovation Fund and the R&D tax credit. With the passage of HBs 5100 and 5101, Michigan will again offer a state-level R&D tax credit. The Michigan research credit offers … Read More
Higher Tariffs Are on the Way – Can Your Company Manage the Damage?
By Alex Martin | Principal, Transfer Pricing By Andrew Astor | President, Focus Solutions Business taxes are regularly a hot topic of speculation with every new US presidential administration. This time, customs duty rates may actually be the more painful issue for importers. Higher tariff duties are designed to encourage domestic production, but many companies … Read More
45X Advanced Manufacturing Production Credit Regulations Update
By Jonathan Tucker | Principal – R&D Tax Credits Republican Senators Tom Cotton (R-AR) and Rick Scott (R-FL) have introduced a resolution (S.J.Res. 119) to overturn final regulations (TD 10010) implementing the Section 45X Advanced Manufacturing Production Credit, a green energy tax incentive created by the Inflation Reduction Act. This mirrors a bipartisan House resolution … Read More
KBKG Tax Insight: Potential Tax Changes Under a Republican Trifecta – Key Issues to Watch
By Jonathan Tucker | Principal, Research & Development Tax Credits Republicans are slated to take control of the legislative and executive branches this coming year, and shifts in fiscal policy will affect taxes, tariffs, and broader economic strategies. KBKG Insight: While there is excitement and talk around “tax cuts,” taxpayers should monitor this changing landscape, … Read More
Six Ways Cost Segregation Remains Valuable as Bonus Depreciation Declines
Thought leadership provided by Eddie Price | Principal – Cost Segregation For a long time, the concept of cost segregation has been a powerful tax-saving strategy for real estate investors, enabling property owners to significantly increase their cash flow by accelerating depreciation on certain assets. With the phasing down of bonus depreciation — from 100% … Read More
Employee Retention Tax Credits: Five Recent Developments and Reminders
Thought Leadership by Ian Williams, Principal | KBKG The Employee Retention Tax Credit (ERC or ERTC) continues to be a top issue for the IRS and Congress, as more than one million ERC claims remain unprocessed. Below are 5 important items for taxpayers and tax professionals to consider after recent IRS updates: 1. IRS Notices … Read More
Key Changes in Accounting Method Procedures for Section 174 Research Expenditures
The IRS has recently issued Rev. Proc. 2024-34, which modifies the method change procedures for specified research or experimental (SRE) expenditures under Section 174. This updated guidance provides important changes for taxpayers seeking to comply with the amended rules following the 2017 Tax Cuts and Jobs Act (TCJA). Here’s a breakdown of the key provisions … Read More
ASHRAE Standards for Energy-Efficient Buildings
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
KBKG Tax Insight: IRS Issues ERC Disallowance Letters and Changes ERC Moratorium Date
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