On April 9, 2013, Maryland’s Governor, Martin O’Malley, approved HB 386, extending and expanding Maryland’s research and development (R&D) tax credit. Maryland’s current R&D tax credit law provides a credit against regular Maryland tax for companies incurring qualified research expenses (QREs) within the state. Maryland currently caps its R&D credits at $6 million per calendar … Read More
R&D Tax Credit Tax Case, Union Carbide Corporation and Raw Materials Used During Testing
Union Carbide Corporation R&D Tax Credit Case Now Final: The Supreme Court denied certiorari review on March 18, 2013The widely followed R&D Tax Credit case involving Union Carbide Corporation (UCC) and the cost of supplies used during production has finally come to an end. On March 18, 2013, the Supreme Court denied review of the … Read More
IRS to Create Repair vs. Capitalization Guidelines Specific to Retail Industry
IRS to Create Repair vs. Capitalization Guidelines Specific to Retail IndustryRecently, the IRS and the Treasury Department announced that they have accepted a request from the National Retail Federation and Retail Industry Leaders Association for guidance under the IRS’ Industry Issue Resolution (IIR) program regarding the new Repair vs. Capitalization Regulations. The purpose of the … Read More
Taxpayer Negligence Penalty for Poor Cost Segregation Study
Summary: In the recently released Chief Counsel Memo #20125201F, the IRS makes it clear that even if you engage a third party to perform a cost segregation analysis, taxpayers cannot avoid penalties for aggressive positions taken in the cost segregation report. The taxpayer attended a presentation that addressed open-air parking structures in which the presentation … Read More
IRS Notice 2013-14 Allows Retroactive WOTC Certification
IRS Notice 2013-14 authorizes employees eligible for the Work Opportunity Tax Credit under non-VOW Act criteria to be certified by a state workforce agency through April 29, 2013 if they were hired between January 1, 2012 and March 31, 2013. The entire text of the Notice can be found here: http://www.irs.gov/pub/irs-drop/n-13-14.pdf.
Enterprise Zones to be Severely Limited
As you may be aware, the California Enterprise Zone program is currently undergoing an administrative rulemaking process which will severely reduce or eliminate the tax credit for many businesses. New regulations are anticipated to go into effect in June. Businesses located in Enterprise Zones should review their tax credits to ensure all available credits under … Read More
Florida Research & Development Tax Credits are Available for 2012
For tax years beginning on or after January 1, 2012, the State of Florida allows a qualified “business enterprise” to claim a state R&D credit of 10% for qualified research expenses (“QREs”) incurred in Florida (2012 Florida Statute §220.196).Is there an application process? Yes. An application process must be completed in order to be considered … Read More
R&D Tax Credit Receives Retroactive Two Year Extension through 2013
Congress passed a two-year extension for the R&D Tax Credit as part of the Fiscal Cliff Relief bill. The “American Taxpayer Relief Act of 2012” (the Act), which the President signed into law on Jan 2, 2013, extends the credit retroactively and is now set to expire at the end of 2013. This is the … Read More
San Diego Enterprise Zone Expansion 9/4/2012
On September 4, 2012, San Diego Regional Enterprise Zone was approved for an expansion. The expansion added a total of 2889 acres to existing zone that is north of Interstate 8. The SDREZ now includes Rancho Bernardo, Miramesa, Kearny Mesa, Grantville, North Bay, Delevan Drive Properties, National City, and 4 separate areas within Chula Vista. … Read More
Fiscal Cliff Bill Extends 45L Tax Credits of $2,000 Per Apartment Unit
Tax Alert: Energy Efficiency Tax Credits for Multifamily Developers Extended as Part of Fiscal Cliff AgreementIn an effort to avert the “Fiscal Cliff”, Congress passed the American Taxpayer Relief Act of 2012 on New Year’s Day, and President Obama has vowed to sign this into law soon. This bill extends many key business tax extenders … Read More