5 Reasons to Claim the R&D Tax Credit in 2026
In 2026, the Research & Development (R&D) Tax Credit remains one of the most valuable tools for U.S. companies investing in innovation. Thanks to the One Big Beautiful Bill Act (OBBBA), domestic research expenses are once again fully deductible, restoring a key tax…
July 6th Amended Return Deadline for 174 Costs
Eligible small businesses have until July 6, 2026 to file amended returns to retroactively deduct certain domestic research and experimental expenditures that…
Ohio’s proposed R&D credit expansion could unlock state income tax savings
Ohio’s proposed House Bill 756 (H.B. 756) would expand Ohio’s nonrefundable R&D tax credit beyond the Commercial Activity Tax (CAT) by…
The Top R&D Tax Credit Providers in 2026 (Ranked & Compared)
Looking for the best R&D tax credit provider to maximize your benefit while keeping audit risk low? In this guide, we ranked and compared several R&D tax credit providers on several critical factors including customer reviews, years in business, national reach…
Why Pass-Through Entities Need Expert Guidance to Claim R&D Tax Credits
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See If You Qualify Pass-through entities such as partnerships, S-Corporations, and LLCs face uniquely complex rules when claiming the Research & Development (R&D) Tax Credit. Unlike C-Corporations, pass-throughs must determine eligibility at the entity level and then allocate the credit to individual owners, each of whom … Read More
2025 Tax Planning: Unlock Retroactive R&D Credits Before It’s Too Late
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See If You Qualify Businesses can claim missed R&D tax credits retroactively by amending prior-year tax returns, generally up to three years back. For 2022 calendar-year returns, the deadline to file an amended claim can be as soon as March 15, 2026, after which the credit … Read More
How Funding Sources Affect R&D Tax Credit Eligibility
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See If You Qualify How research projects are funded can have a major impact on whether related costs qualify for the Research and Development (R&D) Tax Credit. When research is financed through grants, contracts, or subsidies, the IRS may require those expenses to be reduced or … Read More
Understanding R&D Supply Rules to Maximize Tax Credit Claims
See If You Qualify Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See If You Qualify When businesses calculate expenses for the Research and Development (R&D) Tax Credit, supplies are often one of the largest categories of Qualified Research Expenses (QREs). Yet many companies are unaware that not every purchase made for research purposes … Read More
Maximizing R&D Tax Credits Through Prototyping Expenses
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See If You Qualify Prototyping plays a critical role in research and development, yet many businesses do not fully realize the potential tax benefits tied to this critical activity. Developing a prototype often requires significant technical innovation, and the IRS has specifically recognized prototypes in the … Read More
IRS Extends Transition Period for Research Credit Reporting on Form 6765
See If You Qualify Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See If You Qualify Key Highlights Section G of Form 6765 is optional for tax year 2025 (processing year 2026) and mandatory starting in tax year 2026 for most filers. Exceptions beginning in 2026: Qualified Small Businesses (QSBs) electing the payroll tax … Read More
Understanding the Impact of Trade or Business Dispositions on R&D Tax Credits
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See If You Qualify How the Research and Development (R&D) Tax Credit is treated becomes more complex when a trade or business is sold or disposed of. A disposition can change how existing credits are used and calculated, how carryforwards are allocated, and how documentation must … Read More
2024 R&D Expensing Approved: What Small Businesses Need to Do Now
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See if you qualify By Jonathan Tucker and Paul McVoy | Principals – Research & Development Tax Credits The IRS (Rev. Proc. 2025-28) now allows qualifying small business taxpayers to apply §174A to domestic research expenditures in applicable taxable years, those beginning after December 31, 2021, … Read More
Can Foreign-Owned Companies Claim the US R&D Tax Credit?
Last Updated on 07/14/2026 Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube Foreign-owned companies operating in the United States often ask whether they can claim the U.S. federal Research and Development Tax Credit. In many cases, the answer is yes. U.S. tax rules do not automatically prevent a business from claiming the R&D credit simply because the company … Read More
Why R&D Credit Claims Fail Without Documentation
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube Many businesses invest heavily in innovation, developing new technologies, improving systems, and solving technical problems. However, when it comes time to claim the Research and Development (R&D) Tax Credit, they often come up short because they fail to demonstrate a proper process of experimentation, which is … Read More
R&D Deductions for 2024? AICPA Pushes IRS for Urgent Guidance with Recommendations
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Jonathan Tucker and Paul McVoy | Principals – Research & Development Tax Credits The One Big Beautiful Bill Act (OBBBA) established that eligible small businesses may fully deduct domestic research costs capitalized in 2022-2024 via amended return. The problem is there’s currently no clear guidance … Read More
Choosing Between ASC and Regular R&D Credit Methods
This update was originally published on June 2, 2014. Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Kevin Zolriasatain | Principal, Research & Development Tax Credits In a surprising, and long overdue modification to the Section 41 Research & Development tax credit, Treasury announced TD 9666 allowing taxpayer’s the opportunity to use the Alternative … Read More
Mastering the Business Component Test for R&D Tax Credit Success
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube When it comes to claiming the Research and Development (R&D) Tax Credit, understanding the Business Component Test is essential. This test serves as a cornerstone of eligibility, requiring that all qualified research activities be directly tied to a specific business component. Without this alignment, your R&D … Read More
New Refund Option for Minnesota R&D Credit Could Boost Cash Flow
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Paul McVoy and Michael Maroney | Research & Development Tax Credits On June 14, 2025, Minnesota Governor Tim Walz signed H.F. 9 into law, enacting a major update to the state’s R&D tax credit. Beginning in tax year 2025, businesses may elect to receive a … Read More
Manufacturing: Claiming R&D Credits for Improving Processes
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube When most people hear “Research and Development,” they imagine high-tech labs, futuristic prototypes, or scientists in white coats. In reality though, Research & Development (R&D) Tax Credits are just as available to the manufacturing floor as they are to the science lab. Many companies in manufacturing, … Read More
Section 174A and the 2024 Filing Dilemma for Eligible Small Businesses: Do You File or Amend?
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Jonathan Tucker | Principal, Research & Development Tax Credits As the dust settles following the passage of the One Big Beautiful Bill Act (OBBBA), many small businesses and their CPAs are navigating the mechanics of Section 174A, the newly enacted provision that restores the ability to … Read More
How to Claim R&D Credits After an Acquisition
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube Acquiring another company isn’t just a strategic move that grows market share or expands a portfolio of products. Acquisitions can also unlock significant tax advantages. One area that companies often overlook is the Research and Development (R&D) Tax Credit, which can help them gain significant value … Read More
KBKG Announces Free Access to Dash.tax Through June 2026, Empowering Tax Advisors to Claim R&D Tax Credits for Clients
PASADENA, Calif. – July 14, 2025– KBKG, a recognized leader in specialty tax solutions, announced its flagship Research & Development (R&D) tax credit software, Dash.tax, is now available at no cost to approved tax preparers through June 30, 2026. The limited-time initiative enables Certified Public Accountants (CPAs) and other tax professionals to access the full power of Dash.tax-an … Read More
Claiming the R&D Tax Credit for Failed Projects
Contact us Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube Contact us Most businesses associate the Research and Development (R&D) Tax Credit with breakthrough innovations and completed projects. If a product launches successfully or a process gets optimized, it seems obvious to include those efforts in an R&D claim, but what happens when your … Read More
R&D Expensing is Back: What the Section 174 Fix Means for Your 2024 Tax Strategy
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Kevin Zolriasatain and Paul McVoy | Principals, Research & Development Tax Credits For the last two years, companies conducting qualified research have been burdened with an unfavorable tax provision that has made Research and Development (R&D) investments more expensive, at precisely the wrong time. That’s … Read More
KBKG Tax Insight: One Big Beautiful Bill – 2025 Tax Changes and Summary Chart
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Gian Pazzia and Paul McVoy | Research & Development Tax Credits Breaking News – July 4, 2025 On July 4th, President Trump signed the “One Big Beautiful Bill Act” (OBBBA), marking a significant overhaul to federal tax policy. The signing reflects a major pivot in legislative … Read More
SALT Workaround Preserved, Real Estate & R&D Expensing Win Big. What Businesses Need to Know
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Paul McVoy | Principal, Research & Development Tax Credits The reconciliation process for the “One Big Beautiful Bill” (OBBB) has entered its final phase, and in the past three days, Senate Republicans cleared a key procedural hurdle and released updated text that could reach the Senate … Read More
Texas Enhances R&D Credit, Allowing Companies to Claim More
By Bill Taylor and Giovanni Ortiz | Research & Development Tax Credits On June 1, 2025, Texas lawmakers passed Senate Bill 2206 legislation that significantly enhances the state’s R&D Tax Credit structure. The Governor signed this bill into law on June 17, 2025. Effective for franchise tax reports due on or after January 1, 2026, … Read More
Retroactive and Permanent R&D Expensing Restored Under Proposed Senate Legislation
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Jonathan Tucker | Principal, Research & Development Tax Credits The Senate Finance Committee has proposed a significant change to the way U.S. businesses deduct their research and development (R&D) expenses. If passed, the bill would reverse a major change that took effect in 2022 based on … Read More
California Senate Bill 711 Proposes Simplified R&D Credit Method
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Tetyana Guguchkina, Elise Rhee, & Michael Maroney | Research & Development Tax Credits California is poised to overhaul its R&D Tax Credit with Senate Bill 711 (SB 711), which proposes replacing the state’s Alternative Incremental Research Credit (AIRC) with a new Alternative Simplified Credit (ASC) … Read More
House Narrowly Passes Major GOP Tax Bill 215–214, Senate Signals Revisions Ahead
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Jonathan Tucker | Principal, Research & Development Tax Credits Just after midnight on Thursday, May 22, 2025, a full House debate on the multi-trillion-dollar tax bill began, and the House narrowly passed this sweeping tax and spending package dubbed the “One Big Beautiful Bill Act” with … Read More
House Committee Advances Major GOP Tax Bill Amid Internal GOP Divisions
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Jonathan Tucker | Principal, Research & Development Tax Credits On May 18, 2025, the House Budget Committee narrowly approved a major tax and spending package dubbed the “One Big Beautiful Bill Act” with a 17-16 vote. Four Republicans voted “present,” highlighting growing tension within the party … Read More
Senate Reacts to Key Provisions from House Tax Bill, Eyeing Permanent R&D Expensing
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Jonathan Tucker | Principal, Research & Development Tax Credits Important developments recently came out of Congress related to the House’s ongoing reconciliation efforts, specifically around tax provisions that impact businesses directly, most notably, research and development (R&D) expensing. At a recent Tax Council Policy Institute conference, … Read More
House Tax Bill Prioritizes 174 R&D Amortization Fix, Bonus Depreciation, SALT Cap, and more
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Jonathan Tucker | Principal, Research & Development Tax Credits On May 12, 2025, the House Ways and Means Committee released a larger text than what Chairman Jason Smith (R-MO) released on May 9 for proposed tax legislation as part of the FY 2025 budget reconciliation process. … Read More
The Case for Human Expertise in your R&D Tax Credits
In a world increasingly driven by automation, it’s tempting to turn to Artificial Intelligence (AI) powered solutions for complex tasks, even something as nuanced as claiming R&D tax credits. While AI can be a powerful tool, when it comes to maximizing your R&D tax credit claim, human expertise of a trusted advisor is not just … Read More
House Passes 2025 Budget Resolution, Paving Way for Tax and Spending Reform
Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Jonathan Tucker | Principal, Research & Development Tax Credits On April 10, 2025, the U.S. House of Representatives approved the final version of the Fiscal Year (FY) 2025 budget resolution (H. Con. Res. 14) by a razor-thin margin of 216 to 214, which will incorporate amendments … Read More
Lawmakers Introduce Bill to Retroactively Fix R&D 174 Expensing
By Kevin Zolriasatain and Paul McVoy | Principals, Research & Development Tax Credits On March 10, 2025, a bipartisan group of lawmakers introduced the American Innovation and R&D Competitiveness Act of 2025 in the U.S. House of Representatives. The legislation aims to restore the immediate deductibility of research and experimental (R&E) expenditures and reverse the amortization requirement imposed … Read More
KBKG Announces Enhancements to Dash.tax, Streamlining R&D Tax Credit Claims for CPAs, Startups, and Small Businesses
PASADENA, Calif. – March 4, 2025– KBKG, a leader in tax credits and incentives solutions, has introduced significant enhancements to Dash.tax, its innovative tax automation platform designed for CPAs, startups, and small businesses. The latest updates further streamline the process of claiming R&D tax credits, ensuring businesses can efficiently apply credits to payroll taxes, maximize … Read More
Engineering Firms Loses R&D Credits in Court Ruling
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
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
Texas Issues Guidance on Franchise Tax Credits and Carryforward
By Bill Taylor | Principal, Research & Development Tax Credits Recently, the Texas Comptroller’s Tax Policy Division issued guidance on how to apply multiple franchise tax credits and credit carryforwards when more than one is available. The updated guidance clarifies the order in which credits should be applied to maximize tax benefits for taxable entities. … 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
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
Senate Votes on Tax Relief Bill for IRC 174 R&E Expenditures, Bonus Depreciation and Section 163(j)
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
KBKG Tax Insight: Identifying Expenditures for the New IRC 174 Capitalization Requirements
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
KBKG Tax Insight: IRS Finalizes Form 6765 to Claim R&D Credit for the 2024 Filing Season
By Jonathan Tucker | Principal, Research & Development Tax Credits This post was most recently updated on 2/18/2025 to reflect official changes from the IRS. The IRS has officially released the new Form 6765 and its accompanying instructions. These forms are no longer in DRAFT status and should be filed with the 2024 Federal tax … Read More
KBKG Tax Insight: IRS Eases Requirements for R&D Credit Refunds
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
KBKG Tax Insight: Tax Court Denies R&D Credits for Engineering Firm
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
Tax Alert: DEA Proposal to Ease Restrictions on Marijuana
By Paul McVoy and Bill Taylor | Principals, Research & Development Tax Credits A recent proposal by the Drug Enforcement Agency (DEA) to reclassify marijuana from a Schedule I to a Schedule III drug represents a significant shift in the regulatory framework surrounding cannabis. This change could have profound effects on companies operating within the marijuana … Read More
Simple, Swift, Secure: KBKG’s Dash.tax Transforms R&D Credits Up to $50k
PASADENA, Calif. – April 29, 2024 – KBKG, a premier provider of comprehensive specialty tax services and solutions, proudly announces the debut of Dash.tax, its latest R&D tax credit software solution tailored for CPAs and businesses. Designed for swift and precise outcomes, Dash empowers users to effortlessly generate customized Research & Development (R&D) tax credit … Read More
KBKG Tax Insight: April Update, 174 Capitalization Fix & Bonus Depreciation, 2024 Tax Relief Act
KBKG Tax Insight: April Update, 174 Capitalization Fix & Bonus Depreciation, 2024 Tax Relief Act By Emily Flemmer | Manager, Research & Development Tax Credits Frustration mounts among advocates of a bipartisan tax agreement initially approved by the House in January but has since hit a roadblock in the Senate due to Republican resistance. This … Read More
Arizona Introduces New Research & Development Calculation Method for Tax Year 2023
KBKG Tax Alert: Arizona Introduces New Research & Development Calculation Method for Tax Year 2023 By Elise Rhee| Director, Research & Development 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 … Read More
Virginia Research and Development Expenses Tax Credits Amended
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
Michigan’s Senate Enacts R&D Tax Credit
KBKG Tax Insight: Michigan’s Senate Enacts R&D Tax Credit By Michael Maroney | Director, Research & Development 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 … Read More
Research and Development Expensing (IRC Section 174) Still has Bipartisan Support
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
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
Biotech R&D Tax Benefits
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 Credit for Robotics Industry
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
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
Tax Credits for Developing Battery Tech and Chemicals for Electric Vehicles
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
How the PATH Act Helps Small Businesses
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
Understanding R&D Tax Credits for Forest Products
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
KBKG Tax Alert: Proposed Bill Fixes 174 Capitalization and Cuts Off New ERC Claims
KBKG Tax Alert: House passes proposed bill to Fix 174 Capitalization, Extend 100% bonus depreciation, and Cut Off New ERC Claims, now in Senate consideration. Proposal Aims to Boost Businesses with Immediate Deductions for Domestic Research and Experimental (R&E) Expenditures and Capital Investments on qualified property while reining in the Employee Retention Credit (ERC). The … Read More
New IRS Amendments to the Amortization of Specified Research or Experimental Expenditures
New IRS Amendments to the Amortization of Specified Research or Experimental Expenditures Thought Leadership by KBKG The Internal Revenue Service (IRS) issued updates regarding the amortization of specified research or experimental (SRE) expenditures under Section 174. These modifications, outlined in Notice 2024-12 and complemented by Rev. Proc. 2024-9, introduce crucial changes that tax professionals should … Read More
Year-End Legislation Aimed at Changing the TCJA
Year-End Legislation Aimed at Changing the TCJA Kevin Zolriasatain, Principal • Research & Development Tax Credit Services A sizable coalition of House Republicans has advocated for end-of-year legislation addressing three key business tax provisions altered by the 2017 tax reform bill. They characterize this proposal as a pro-growth economic package. In a letter dated November … Read More
Qualifying AI for the R&D Tax Credit | KBKG
Qualifying AI for the R&D Tax Credit | KBKG Artificial intelligence (AI) has recently been a mainstay of news headlines worldwide, and for good reason. Publicly released AI tools now allow individuals and companies to generate images and text nearly indistinguishable from those created by humans. If you are a company or have a department … Read More
IRS Extends Transition Period for Perfecting R&D Tax Credit Claims
IRS Extends Transition Period for Perfecting R&D Tax Credit Claims Jonathan Tucker, Principal • Research & Development Tax Credit Services In this post, we discuss the recent IRS update as of October 30, 2023. The IRS has extended through January 10, 2025, the transition period for perfecting research credit refund claims prior to IRS’ final … Read More
The RD Tax Credit
The R&D Tax Credit – The Basics Nurturing and expanding a business in many industries often requires you to develop new technologies, systems, and products. This type of expansion and growth is not only vital to your business but the economy as a whole, which requires a significant degree of innovation to thrive. Innovation, however, … Read More
Reviving Michigan’s R&D Tax Credit
Reviving Michigan’s R&D Tax Credit Michigan businesses are one step closer to large tax benefit. On February 7, Michigan’s governor, Gretchen Whitmer, presented her FY2025 Executive Budget Recommendation. Included in the budget is a proposal for a $100 million research and development (R&D) credit, the state’s first R&D credit since the corporate income tax (CIT) … Read More
What Is the Difference Between Refundable and Non-Refundable Tax Credits?
What Is the Difference Between Refundable and Non-Refundable Tax Credits? CPAs are well aware of the intricate tax landscape clients face. Tax credits are essential in reducing their tax liability and maximizing their financial well-being. Among the various credits available, it’s important to understand refundable and non-refundable tax credits. Examine the difference between a refundable … Read More
Proposed Changes to Form 6765: Enhancing R&D Tax Credits
Proposed Changes to Form 6765: Enhancing R&D Tax Credits Thought Leadership by Kevin Zolriasatain | Principal, Research & Development Tax Credits Staying informed about regulatory updates is vital for tax professionals, especially when it comes to Research and Development (R&D) tax credits. The Internal Revenue Service (IRS) made a significant announcement on Friday, September 15th, unveiling … Read More
Kansas Issues New Notice to the Research and Development Tax Credits
Kansas Issues New Notice to the Research and Development Tax Credits Thought Leadership by Jonathan Tucker, Principal – Research and Development Tax Credit Services As certified public accountants, staying abreast of changes in tax laws and regulations is crucial to best serve your clients. In this blog, we’ll dive into the recent amendments by House Bill … Read More
KBKG Tax Insight: IRS Releases Guidance on Section 174 R&E Expenses
KBKG Tax Insight: IRS Releases Guidance on Section 174 R&E Expenses Monday, September 11, 2023 By Kevin Zolriasatain | Principal, Research & Development Tax Credits On Sept. 8, 2023, the Internal Revenue Service (IRS) unveiled Notice 2023-63. This significant and eagerly awaited update to tax regulations under Section 174 marks a pivotal moment in the realm … Read More
Wisconsin Department Revenue Updates Publication 131 – R&D Tax Credits
Wisconsin Department Revenue Updates Publication 131 – R&D Tax Credits Thought Leadership by Michael Maroney, Director – Research and Development Tax Credit Services | KBKG Understanding tax incentives and research credits can often be as intricate as deciphering a complex puzzle. Fortunately, the Wisconsin Department of Revenue has developed the newly updated Publication 131, a … Read More
How Form 6765 Can Benefit Your Business
How Form 6765 Can Benefit Your Business Form 6765 is a document the Internal Revenue Service published as part of the tax code. The official name of the document is Credit for Increasing Research Activities. However, it is more informally called the R&D Tax Credit Form. It can be a valuable source of savings for your … Read More
KBKG to Host Webinar Series with AIA Los Angeles
KBKG to Host Webinar Series with AIA Los Angeles PASADENA, Calif. – 7/26/2023 – KBKG, a leading provider of turnkey tax services and solutions, is set to host a series of webinars alongside AIA Los Angeles on August 1 and August 8. The two-part series is to educate architects on effective cost-saving strategies through various … Read More
Everything You Need to Know About R&D Tax Credits
Last Updated on 06/18/2026 Everything You Need To Know About R&D Tax Credits Business owners often consider taxes an inconvenient but necessary part of everyday operations. However, a better understanding of the R&D tax credit, formally the Research and Development tax credit, can translate directly into significant cash savings. Following the One Big Beautiful Bill Act (OBBB Act) signed … Read More
R&D Tax Credit for Software Development
Last Updated on 06/16/2026 R&D Tax Credit for Software Development Has your company invested in creating or improving software? You may be eligible for the research and development tax credit, a dollar-for-dollar reduction in federal tax liability. The credit applies to both commercial software products and proprietary internal tools, and it can translate into significant cash … Read More
Understanding the R&D Tax Credit for Manufacturing
Understanding the R&D Tax Credit for Manufacturing Innovation is at the heart of every successful manufacturing company. Businesses must find ways to improve, create more efficient processes, and develop new and valuable products. That innovation can be expensive. R&D tax credits for manufacturing can be helpful. Still, too many companies don’t know how to take advantage … Read More
R&D Tax Credits for Startups and Small Businesses
Last Updated on 08/05/2026 By Jonathan Tucker | Principal, R&D Startups and small businesses that invest in Research and Development (R&D), product development, software, engineering, or certain manufacturing activities may be eligible for the federal R&D tax credit. The R&D credit can help reduce tax liability and, for eligible qualified small businesses, may also provide payroll tax offset opportunities. To claim the credit, businesses generally need to complete IRS Form … Read More
Boost to Businesses – Build It In America Act
Boost to Businesses – Build It In America Act by Kevin Zolriasatain | Principal, KBKG, 6/15/2023 Tax Insight: Research and Development (R&D) Tax Credit / Research and Expenditures On Tuesday, June 13, the House Ways and Means Committee approved three bills: the Small Business Jobs Act, or H.R. 3937, and the Build It in America Act, or … Read More
Section 174 and R&E – Uncertainty and Questions
Section 174 and R&E – Uncertainty and Questions by Kevin Zolriasatain | Principal, KBKG, 3/23/2023 Many businesses, small and large, rely on research and development to improve their offerings, compete with international markets, and increase profits. The implications of recent changes to section 174 and no movement from Congress have left many business owners unsure … Read More
IRC/Multistate Corporate Income Tax Comparison Guide
IRC/Multistate Corporate Income Tax Comparison Guide Friday, May 5, 2023 – Thought Leadership by R&D | KBKG Note: The data in the chart is only current as of the publish date of this blog. We expect this data to change. Research and experimental expenditures are essential to many businesses, especially in technology, manufacturing, and healthcare. … Read More
IRS Issues Revenue Ruling on the Deductibility of R&E Expenditures
IRS issues Revenue Ruling on the Deductibility of Research and Experimental Expenditures by Jonathan Tucker, Principal | KBKG, 4/18/2023 Revenue Ruling 58-74 No Longer Applicable – The IRS issued Revenue Ruling 2023-8, making obsolete Revenue Ruling 58-74 on a prospective basis as of July 31, 2023. This means that taxpayers can no longer file an amended … Read More
Mississippi Allows Businesses to Deduct Research or Experimental Expenditures
Mississippi Allows Businesses to Deduct Research or Experimental Expenditures By Jonathan Tucker, Principal | Published Monday, April 3rd, 2023 On Monday, April 3, 2023, Mississippi passed H.B. 1733, a change in the Mississippi State Income Tax Law. The law allows businesses to elect to fully deduct research or experimental expenditures in the year they are … Read More
American Innovation and Jobs Act Aims to Expand R&D Tax Credits and Address Confusion Over Section 174 Rules
American Innovation and Jobs Act Aims to Expand R&D Tax Credits and Address Confusion Over Section 174 Rules by Kevin Zolriasatain | Principal, KBKG, 3/23/2023 On March 17, 2023, Senators Maggie Hassan (D-NH) and Todd Young (R-IN) reintroduced the American Innovation and Jobs Act (“The Act”). This act aims to expand the refundable R&D Credit and … Read More
AICPA Pens Letter Urging Congress to Defer R&D Expense Capitalization (Sec 174) Provision Until 2026
On February 14, 2023, the American Institute of Certified Public Accountants (AICPA) sent a letter urging Congress to address expired and expiring tax provisions to avoid needless complexity and ambiguity. More specifically, the AICPA called on Congress to defer the Internal Revenue Code Section 174 amortization requirement for research and experimental expenditures until 2026. The … Read More
IRS Issued Additional Guidance on Section 174, Specified Research or Experimental Expenditures
This article has been updated from its original posting on Dec. 15, 2022. The Treasury Department and Internal Revenue Service (IRS) issued Revenue Procedure 2023-11 providing updated guidelines for accounting method changes for the treatment of specified research or experimental expenditures under Section 174 that changed with the Tax Cuts and Jobs Act of 2017 … Read More
KBKG Tax Insight: Tax Court Denies Construction Company R&D Credits
A summary judgment was recently granted when the government successfully argued that a construction company did not conduct qualified research activities during the tax year in question and was therefore not entitled to the $576,756 refund they were paid. In this case, the defendant was a shareholder of a civil construction company and the contested … Read More
An Introduction to the Reverse Plea to the U.S. Senate and House of Representatives to Extend Section 174
Over 150 U.S.-based businesses and trade associations recently issued a plea to the U.S. Senate and U.S. House of Representatives leadership urging Congress to extend Section 174 provisions allowing taxpayers to deduct 100% of Section 174 R&E expenditure in the year they were incurred. Historically, 100% of Section 174 R&E expenditures could be 1) deducted … Read More
This Month’s Webinars
Looking for CPE credit? We have several sessions available this month. Click the links below to register. If you have questions or need help registering, please email info@kbkg.com. Research & Development Tax Credits 11/1/2022 | 12:00 PM PT | 1 hour | 1 CPE credit This webinar will cover the fundamentals of the Research and … Read More
Inflation Reduction Act Expands Payroll Tax Credit Benefits for Small Businesses
The Inflation Reduction Act provides huge opportunities for the real estate industry as well as for architects and engineers. However, the expansion of “green” tax incentives 45L and 179D is not the only tax benefits getting a boost. The newly formed law will also improve upon the R&D Tax Credit. This change will have a … Read More
KBKG Tax Insight: Changes to Recently Amended Texas Franchise Tax Regulations
Published on June 10, 2022, Texas Register, the Texas Comptroller proposed revisions to the recently amended Texas franchise tax regulations surrounding the Texas sales and use tax exemption and the Texas franchise R&D tax credit. These revisions soften the Internal Use Software (IUS) and Combined Group definitions after receiving overwhelming feedback surrounding the Texas franchise … Read More
KBKG Tax Insight: Reviving Missouri’s R&D Tax Credit 2023
Beginning with the 2023 tax year, Missouri taxpayers can claim a research and development (R&D) tax credit on its state tax returns for R&D activities performed within the state. Not since 2005 have Missourians had the ability to reduce its state tax bill with this credit. If you are a taxpayer or have taxpayer clients … Read More
KBKG, R&D Tax Credits & 179D Incentives Firm, to Exhibit at the American Institute of Architects A’22 National Conference This Week
KBKG plans an educational and interactive booth experience for architect attendees at AIA’s largest annual event. CHICAGO, June 20, 2022 (Newswire.com) – Nationwide tax specialty firm KBKG is set to exhibit at the American Institute of Architect’s (AIA) A’22 Conference on Architecture in Chicago from June 22-25. At the exhibit, KBKG will showcase their architect … Read More
Are You Looking To Upgrade Your R&D Credit or 179D Provider?
Are you looking to upgrade your R&D credit or 179D provider? As you begin to evaluate potential service providers, it’s important to remember that there are significant differences between R&D credit and 179D advisors in the marketplace. Sometimes taxpayers are not immediately aware of how those differences may impact their experience from start to finish. … Read More
KBKG to Exhibit, Sponsor, and Speak at the TXCPA Free CPE Expo
Our Director of R&D Tax Credits and ERTC, Bill Taylor is speaking at the TXCPA Free Expo on June 23rd. Along with him, our Regional Director, Matthew Geltz, is representing KBKG at the exhibit hall. The TXCPA Free CPE Expo is taking place on June 23rd at the UT Commons Conference Center in Texas. About … Read More
R&D Tax Credit Insights from Former IRS Executives
R&D Tax Credit Insights from Former IRS Executives – Videos by Jack Jolly, Director and Mark Bodenstab, Director | KBKG, 6/14/2022 Jack Jolly is a Director of R&D Credit at KBKG. He worked 20 years for the IRS managing a team of IRS engineers who spent most of their time auditing R&D tax credit claims. … Read More
KBKG to Exhibit and Sponsor at PrimeGlobal Partner Leadership Summit
Our CEO, Gian Pazzia is attending the PrimeGlobal Partner Leadership Summit as a delegate. Along with him, our National Director of Business Development, Gina Lim, is sponsoring the event on behalf of KBKG. The conference is taking place from June 20th to June 22nd at the Fairmont Royal York in Toronto, Canada. About PrimeGlobal Partner … Read More
KBKG to Exhibit and Sponsor at AIA Architecture Conference
This year Todd French, Lon O’Connor, Robert VanDeVeire, Brandon Val Verde, and Kyle Ernsberger will be representing KBKG at the AIA Architecture Conference. The conference takes place from June 22nd to June 25th in Chicago, Illinois. About the AIA Architecture Conference The AIA Architecture Conference is the architecture and design event of the year. With … Read More