Breaking News: Senate Moves to Preserve R&D Expensing & Expand Research Credit
A motion to instruct conferees of the America COMPETES/USICA competitiveness bills by Senator Maggie Hassan (D-NH) was agreed to 90-5 on Wednesday, May 4, 2022. The bill called for preserving R&D expensing, rather than the IRC Section 174 five-year amortization that took effect this year, and an expansion of the R&D tax credit for small … Read More
KBKG to Speak at SCACPA Spring Splash Conference 2022
Our Research and Development Tax Credit Director, Ian Williams, is speaking while Principal, Jonathan Tucker, and Regional Director Chad Niehaus are representing KBKG at the SCACPA Spring Splash Conference 2022. This event takes place from May 12th and May 13th in Spartanburg, SC. Our Southeast team specializes in Cost Segregation, Green Building Tax Incentives (45L … Read More
KBKG Speaking at New York Multifamily Summit 2022
Our Cost Segregation & Fixed Assets Principal, Sumit Sharma, will be speaking at NYMS this year during the Value Add panel discussion. Along with him, Alexis McClellan and Justin Brumfield will represent KBKG. The New York Multifamily Summit will take place on Thursday, May 12th in New York, New York. This event is New York’s … Read More
Webinars For May 2022
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 [email protected] Research & Development Tax Credits 05/03/2022 | 12:00 PM PT | 1 hour | 1 CPE credit This webinar will cover the fundamentals of the Research and … Read More
![[PRESS RELEASE] KBKG Expands Atlanta Footprint with Office in Buckhead](https://www.kbkg.com/wp-content/uploads/KBKG-Tax-Insight-Nebraska-Legislators-Consider-Research-or-Experimental-Expenditures-Fully-Deductible-3-2.jpg "[PRESS RELEASE] KBKG Expands Atlanta Footprint with Office in Buckhead")
[PRESS RELEASE] KBKG Expands Atlanta Footprint with Office in Buckhead
After five years in the north Atlanta metro region, the firm has moved operations inside the city’s perimeter to better serve surrounding businesses. Nationwide tax specialty firm KBKG has recently moved its existing Atlanta metro operations from the original Alpharetta location to the heart of Atlanta’s Buckhead business district. The firm’s southeast team has upgraded … Read More
KBKG Tax Insight: Changes in Kansas Research and Development Tax Credit Incentive
Earlier this month, the Kansas University Jayhawks men’s basketball team captured the school’s 6th National NCAA Championship with a 72-69 victory over the North Carolina Tarheels. In one of the most competitive college basketball years to date, Kansas was crowned number 1. Much like college basketball, states compete to attract businesses and innovation to spur … Read More
KBKG Representing at TXCPA Austin Accounting & Finance Leaders Conference 2022
Eddie Price, Matthew Geltz, and Bill Taylor will be representing KBKG at the TXCPA Austin Accounting & Finance Leaders Conference on Thursday, April 21st in Austin, Texas. Our Texas team specializes in Cost Segregation, Green Building Tax Incentives (45L and 179D), Transfer Pricing, and more.. About the TXCPA Austin Accounting & Finance Leaders Conference The … Read More
KBKG Tax Insight: Minnesota Introduces an Alternative Simplified R&D Tax Credit
In an effort to further stimulate the Minnesota economy, state Senator Julia Coleman and House Representative Kristin Robbins introduced S.F. 2970 and H.F. 3316, respectively. Both bills would add a new methodology for taxpayers to utilize in calculating its Minnesota R&D Tax Credit. It is modeled after the federal Alternative Simplified R&D Credit (ASC) methodology. … Read More
Hawaii Senator Jarrett Keohokalole Seeks to Increase Annual Cap for State’s Research Credit
On January 21, 2022, Hawaii State Senator Jarrett Keohokalole introduced Senate Bill (SB) 2599, revising the certification requirements and increasing the annual aggregate cap for the State of Hawaii’s tax credit for research activities (“Hawaii R&D tax credit”). The proposed Section 235-110.91 revisions would first and foremost triple the aggregate cap of research credits available … Read More
KBKG Tax Insight Nebraska Legislators Consider Research or Experimental Expenditures Fully Deductible
Earlier this month, Nebraska State Senator Brett Lindstrom introduced Legislative Bill 827 allowing taxpayers to fully deduct research or experimental (R&E) expenditures in the year in which they were paid or incurred. Beginning January 1, 2022, federal law under IRC Section 174 requires federal taxpayers to charge these expenses to a capital account and amortize … Read More
KBKG Tax Insight: Illinois Lawmakers Seek to Significantly Improve the State Research & Development Tax Credit
On January 18th, Illinois State Senator, Donald DeWitte introduced a proposed amendment to the Illinois Income Tax Act to base the incremental qualified research expenditures (QREs) on an increase over 50% of the average QREs incurred within the state of Illinois. This would bring the state’s credit calculation more in line with the federal Alternative … Read More
KBKG Speaking at Ohio Chamber of Commerce – 2022 Business Tax Conference
KBKG spoke at the Ohio Chamber of Commerce 2022 Business Tax Conference on Tuesday, January 25th and Wednesday, January 26th. Lester Cook presented on Cost Segregation, Paul McVoy spoke on R&D Tax Credits, and Todd French represented the firm at the exhibit booth. See below for session details. Tuesday, January 25th | 1:45PM EST Cost … Read More
KBKG Tax Insight: ABA Urges IRS for Proposed Regulations for R&D
The American Bar Association (ABA) is calling on the Internal Revenue Service (IRS) to issue regulations regarding new tax filing procedures required by taxpayers to comply with a Chief Counsel Memorandum issued by the IRS on October 15, 2021. Effective January 10, 2022, these new procedures significantly expand the documentation required to accompany the filing … Read More
![[Updated] KBKG Tax Insight: R&D Tax Credits – Protective 280C(c)(3) Elections](https://www.kbkg.com/wp-content/uploads/Copy-of-A-Taxpayers-Property-Purchase-Land-vs-Building-Allocation.jpg "[Updated] KBKG Tax Insight: R&D Tax Credits – Protective 280C(c)(3) Elections")
[Updated] KBKG Tax Insight: R&D Tax Credits – Protective 280C(c)(3) Elections
Updated January 7, 2022 The Section 41 Research Credit was enacted in 1981 as a temporary code section and made permanent with the passage of the Protecting Americans from Tax Hikes (“PATH”) Act of 2015. The research credit is an incentive providing taxpayers across all industries, performing qualified activities, the opportunity to reduce their tax … Read More
KBKG Tax Insight: Research & Development Tax Credits for Michigan Taxpayers Under House Bill 5601
Michigan taxpayers may soon be able to significantly reduce their Michigan state tax liability due to a bill introduced by Rep. Matt Hall. House Bill 5601 provides a state research and development tax credit equal to 15% of the qualified research expenditures (QREs) incurred by Michigan companies within the state. The QREs incurred must meet … Read More
Feature: What Is the Research and Development (R&D) Credit and How Do I Qualify?
As featured in the Small Business Tax Savings Podcast Mike Jesowshek, CPA, Founder of JETRO & Associates, interviewed our Research and Development Tax Credits Principal, Jonathan Tucker. Topics discussed include the fundamentals of the Research and Development (R&D) Tax Credit, R&D tax credit benefits the four-part test, qualifying activities, qualifying expenditures, and more. Each year … Read More
![[Video] What is the Four-Part Test?](https://www.kbkg.com/wp-content/uploads/Video-What-is-the-four-part-test.png "[Video] What is the Four-Part Test?")
[Video] What is the Four-Part Test?
Many companies are hesitant to take advantage of the Research & Development (R&D) Tax Credit for fear of a possible IRS audit. In our video series, former IRS engineering officials discuss how many companies can avoid IRS scrutiny by properly describing their research activities. KBKG’s IRS Audit Defense videos give a better understanding of how … Read More
![[Video] Types of Sampling Methodologies](https://www.kbkg.com/wp-content/uploads/Video-Sampling-Methodologies-1.jpg "[Video] Types of Sampling Methodologies")
[Video] Types of Sampling Methodologies
Many companies are hesitant to take advantage of the Research & Development (R&D) Tax Credit for fear of a possible IRS audit. In our video series, former IRS engineering officials discuss how many companies can avoid IRS scrutiny by properly describing their research activities. KBKG’s IRS Audit Defense videos give a better understanding of how … Read More
![[Video] How Can People Work with the IRS More Effectively?](https://www.kbkg.com/wp-content/uploads/VideoHow-Can-People-Work-with-the-IRS-More-Effectively.jpg "[Video] How Can People Work with the IRS More Effectively?")
[Video] How Can People Work with the IRS More Effectively?
Many companies are hesitant to take advantage of the Research & Development (R&D) Tax Credit for fear of a possible IRS audit. In our video series, former IRS engineering officials discuss how many companies can avoid IRS scrutiny by properly describing their research activities. KBKG’s IRS Audit Defense videos give a better understanding of how … Read More
![[Video] A Good Research Study Can Make Life Easier with Jack Jolly](https://www.kbkg.com/wp-content/uploads/Video-A-Good-Research-Study-Can-Make-Life-Easier-1-1.jpg "[Video] A Good Research Study Can Make Life Easier with Jack Jolly")
[Video] A Good Research Study Can Make Life Easier with Jack Jolly
Many companies are hesitant to take advantage of the Research & Development (R&D) Tax Credit for fear of a possible IRS audit. In our video series, former IRS engineering officials discuss how many companies can avoid IRS scrutiny by properly describing their research activities. KBKG’s IRS Audit Defense videos give a better understanding of how … Read More
![[Video] Types of Sampling Methodologies with Mark Bodenstab](https://www.kbkg.com/wp-content/uploads/Video-Types-of-Sampling-Methodologies-with-Mark-Bodenstab.jpg "[Video] Types of Sampling Methodologies with Mark Bodenstab")
[Video] Types of Sampling Methodologies with Mark Bodenstab
Many companies are hesitant to take advantage of the Research & Development (R&D) Tax Credit for fear of a possible IRS audit. In our video series, former IRS engineering officials discuss how many companies can avoid IRS scrutiny by properly describing their research activities. KBKG’s IRS Audit Defense videos give a better understanding of how … Read More
Feature: Research and Development Tax Credits for Pennsylvania and Federal Perspectives with PICPA
CPA Conversations · Research and Development Tax Credits: Pennsylvania and Federal Perspectives Our Research and Development Principal, Paul McVoy, was featured on PICPAs CPA Conversations podcast and interviewed by Bill Hayes, Managing Editor of the Pennsylvania CPA Journal. Paul discusses research and development tax credits in Pennsylvania and at the federal level. He explains which … Read More
Three Tax Saving Strategies for Architecture & Engineering Firms
Architecture and engineering firms that are not claiming R&D Tax Credits, Employee Retention Tax Credits, or 179D are potentially leaving millions of dollars in tax benefits on the table each year. What are these benefits, and what cash flow is being overlooked? R&D Tax Credit Architecture and engineering firms may want to take another look … Read More
KBKG Tax Insight: Iowa Investments in Research & Development Can Produce Lucrative Tax Credits
For taxpayers operating in the state of Iowa, there is an outstanding opportunity to take advantage of a refundable tax credit for activities meeting the requirements of IRC §41 (To be eligible for R&D Tax Credits, research activities must meet the criteria in the IRS Four-Part Test). The tax credits are available for expenditures related … Read More
![There’s Still Time to Claim the R&D Tax Credit on Extension [Infographic]](https://www.kbkg.com/wp-content/uploads/Theres-Still-Time-to-Claim-the-RD-Tax-Credit-on-Extension.jpg "There’s Still Time to Claim the R&D Tax Credit on Extension [Infographic]")
There’s Still Time to Claim the R&D Tax Credit on Extension [Infographic]
Are you or your clients interested in claiming the R&D Tax Credit? Good news. There is still time to perform a study for inclusion on your extended returns, but you must act fast. Time is running out. What is the R&D Tax Credit? The Research and Development Tax Credit can be applied to qualified research … Read More
Feature: R&D for Agriculture with Harvest Harmonics
Jim Kurtz, Executive Director of Harvest Harmonics, interviewed our Principal, Jon Tucker, and Director, William Long. They discussed the benefits of the R&D Tax Credit for the agriculture industry and gave farmers valuable information that they can use to make their farms and business more profitable. Learn more about R&D Tax Credits for the agriculture … Read More
KBKG Tax Insight: Monetize R&D Tax Credits: Start-ups and Small Businesses
The Protecting Americans from Tax Hikes (PATH) Act of 2015 made it possible for start-ups and small businesses to qualify for a tax credit of up to $250,000. Start-ups and small businesses that were previously unable to benefit from the research and development (R&D) tax credits due to lack of taxability should take advantage of … Read More
Research Tax Credit Opportunities for Architects and Engineers
Architecture and engineering firms may want to take another look at the often forgotten Research & Development (R&D) Tax Credit. Many may be eligible for federal and state research credits without realizing it. Historically, the R&D Tax Credit was geared to only benefit large companies; mostly in the manufacturing, software, high-tech and pharmaceutical industries. However, … Read More
KBKG Tax Insight: (AB 80) PPP Loan is Tax Deductible in CA & Impact on R&D Tax Credit
After months of uncertainty, California taxpayers can begin to proceed with some degree of clarity around the treatment of Economic Injury Disaster Loans (“EIDL”) as well as Paycheck Protection Program (“PPP”) loans received and forgiven for income tax purposes. Assembly Bill 80 (“A.B. 80” or the “bill”) allows taxpayers that meet certain criteria to exclude … Read More
KBKG Welcomes New Director to Their Texas Office
DFW, Texas – KBKG, a nationwide tax specialty firm, hired new R&D Tax Credit Director, Bill Taylor, to join its Texas office. Bill has over 10 years of experience providing federal tax consulting services to companies in various industries, including technology, aerospace and defense, manufacturing, and other professional services. Bill began his career with a … Read More
Governor Newsom Announces $150k Expense Deduction for PPP Loans
The California Small Business COVID-19 Relief Grant Program, a $2.1 Billion state-funded package, was created to provide much needed relief to California small businesses. Part of the state and Governor Newsom’s plan includes a measure that would allow up to $150,000 in PPP expenses to be eligible for deduction on state returns. While the details … Read More
![[PRESS RELEASE] KBKG Welcomes Two New Directors to Atlanta-Based Operation](https://www.kbkg.com/wp-content/uploads/Press-Release-–-KBKG-Welcomes-Two-New-Directors-to-Atlanta-Based-Operation.jpg "[PRESS RELEASE] KBKG Welcomes Two New Directors to Atlanta-Based Operation")
[PRESS RELEASE] KBKG Welcomes Two New Directors to Atlanta-Based Operation
Atlanta, Georgia – Nationwide tax specialty firm KBKG hired two new Directors, Amar Patel and Ian Williams, as part of their Southeast practice. Both Directors join KBKG with over 25 years of combined experience in Cost Segregation and Research & Development Tax Credits, two key services offered by the firm to CPAs and businesses. As … Read More
KBKG Tax Insight: Biden Will Have to Deal With Tax Revenue Shortfall From COVID-19
As featured in Accounting Today When Joe Biden was inaugurated last month, he assumed all the responsibilities of the American presidency, including tax policy decisions. With the advantage of a Democratic majority in both houses of Congress, his administration will probably pursue tax policy options to raise revenues to offset the deficit attributable to the … Read More
Tax Incentives in the Life Science and Pharmaceutical Industry
As featured in PICPA As the world raced to create treatments for the worldwide coronavirus pandemic, a spotlight was on the domestic life sciences and pharmaceutical industry like never before. Companies across the industry leveraged artificial intelligence, data analytics, and novel applications of historical medicines, among other ideas to combat the virus. The demand for … Read More
Have a Fat Tax Bill? Have You Thought About the R&D Tax Credit?
Are you a business owner that is unhappy with your recent tax bill? If you have not explored it yet, the Research and Development (R&D) tax credit can provide significant benefits to your business’ bottom line. Chances are you could be missing out on a dollar-for-dollar reduction in your federal and state income tax liability. … Read More
The Differences Between LB&I and SB/SE Research Credit Adjustments
Let’s assume a scenario where you filed for the credit for increasing research (“R&D credit”) and the Internal Revenue Service (“IRS”) selected your return for examination/audit. At the conclusion of the audit, the IRS has two basic options: a “no change” or a “disallowance.” As much as everyone would like to receive a “no change,” … Read More
Top 8 Benefits of the R&D Tax Credit
The research and development tax credit is one of the most valuable credits leveraged by innovators and entrepreneurs since its inception in 1981. While the credit has been around for almost 40 years, renewed focus on research and development has created opportunities for even more businesses to take advantage. Curious to know more? Here are … Read More
IRS Debunks Tax Refund Myths
The following article is written by the IRS. View the original source here: https://www.irs.gov/newsroom/irs-debunks-tax-refund-myths. WASHINGTON ― With the July 15 tax deadline now past, the Internal Revenue Service reminds all taxpayers that there is no secret way to find out when a refund will be issued. Most taxpayers have already filed their federal tax return, … Read More
Introducing KBKG’s New Video Series: R&D Tax Credit Audit Defense with Jack Jolly and Mark Bodenstab
Many companies are hesitant to take advantage of the Research & Development (R&D) Tax Credit for fear of a possible IRS audit. In our first 2 minute video, former IRS engineering officials discuss how many companies can avoid IRS scrutiny by properly describing their research activities. KBKG’s IRS Audit Defense videos give a better understanding … Read More
KBKG Tax Insight: Senate Finance Committee Discusses Potential for New Coronavirus Bill that Would Allow Accelerated Federal Tax Breaks
As the Coronavirus pandemic continues to impact the country and economy, the Senate Finance Committee is continuing to discuss ways to help American businesses weather the storm. According to insiders, the potential proposal, which could be as large as $1 Trillion in relief funds, will include a provision that would remove limitations on businesses that … Read More
KBKG Tax Insight: Which IRS Division is Conducting Your R&D Credit Exam? The Answer is Crucial
As featured in Accounting Today The Internal Revenue Service (IRS) collected nearly $3.4 trillion through more than 160 million individual and business tax returns during Fiscal Year 2018. For all this revenue, approximately 991,000 returns were examined, representing less than one percent of all tax returns filed. The number of examinations conducted to uphold enforcement … Read More
KBKG Tax Insight: New and Improved Changes to Research and Development (R&D) Tax Credit: Furthering the American Recovery from the Coronavirus
Senator Chris Coons of Delaware recently introduced legislation (S. 3593) called “Furthering Our Recovery With American Research & Development Act” (“FORWARD”), which makes changes to and expands Internal Revenue Code Section 41: Credit for Increasing Research Activities (“IRC 41”). Applying these modifications to the existing law could allow companies that invest in the research and … Read More
KBKG Tax Insight: R&D Studies Can Make Audits Easier and the Credits More Sustainable
As featured in Accounting Today Internal Revenue Service examinations of the research tax credit can burden both the client and the IRS. Throughout most of its decades-long history, research credit audits have exposed areas of misunderstanding and, in many circumstances, led to major disagreements. There is little “bright line” guidance, and each examiner must consider … Read More
Changes and Extension of the Virginia R&D Tax Credit
The Commonwealth of Virginia made key changes and extended the income tax credit for conducting qualified research and development in Virginia. Key changes include: A three (3) year extension of the credit from tax years beginning before January 1, 2022 to tax years beginning before January 1, 2025 Beginning January 1, 2021, an increase in … Read More
KBKG Tax Insight: Cash is Still King – R&D Credit Provides Businesses Much Needed Cashflow
At the end of March, the U.S. government passed the Coronavirus Aid, Relief, and Economic Securities (“CARES”) Act to provide financial and emergency relief to American businesses, the American people, and the U.S. economy in whole. The objective of the stimulus package for businesses was to provide a lifeline of cash and liquidity that would … Read More
KBKG Tax Insight: Architectural Firms Can and Do Qualify for the Research and Development Tax Credit
Who says architectural firms can’t qualify for the research and development (R&D) tax credit? Not the United States Tax Court (USTC). The USTC recently granted summary judgment in favor of an architectural firm that claimed the R&D tax credit. At the heart of this judgment was whether Populous Holdings, Inc. (Populous) incurred contract research expenditures … Read More
KBKG Tax Insight: Words Matter When Describing R&D Credit Activities
As featured in Accounting Today We’ve all experienced a situation where our intent and the meaning of something we’ve said or written was misinterpreted by the recipient. There are numerous articles available for many situations to help us avoid this problem, such as the how to ask the boss for a raise or the best … Read More
Regional Director Todd French Joins KBKG’s Midwest Office
KBKG is pleased to announce the addition of Business Development Regional Director Todd French to KBKG’s Midwest Regional office, who is relocating from the KBKG Texas office after serving the Dallas-Ft. Worth Community. Todd French began his finance career 15 years ago as a banker for a large regional bank where he was trained to … Read More
![[PRESS RELEASE] Jonathan Tucker Joins KBKG as Director of Research & Development Tax Credits](https://www.kbkg.com/wp-content/uploads/PRESS-RELEASE-Jonathan-Tucker-Joins-KBKG-as-Director-of-Research-Development-Tax-Credits-SITE.jpg "[PRESS RELEASE] Jonathan Tucker Joins KBKG as Director of Research & Development Tax Credits")
[PRESS RELEASE] Jonathan Tucker Joins KBKG as Director of Research & Development Tax Credits
We recently added Research & Development Tax Credits Director Jonathan Tucker to our Southeast office‘s team of experts. Jon brings over 15 years of experience providing federal business tax advisory services to clients in various industries including technology, manufacturing, transportation, healthcare, retail and consumer products, hospitality, media and entertainment, financial and other professional services industries. … Read More
R&D Director Paul McVoy Relocates to KBKG’s New York Office
We are excited to announce that we are expanding our New York City office in Midtown with the addition of Research & Development Tax Credit Service Director Paul McVoy, who is relocating from KBKG’s Pasadena Headquarters. While KBKG has had a strong presence in the New York City area for several years, Paul’s addition will … Read More
![[INTERVIEW] Mark Bodenstab, Director of Research & Development Tax Credits](https://www.kbkg.com/wp-content/uploads/INTERVIEW-Mark-Bodenstab-Director-of-Research-Development-Tax-Credits-1.jpg "[INTERVIEW] Mark Bodenstab, Director of Research & Development Tax Credits")
[INTERVIEW] Mark Bodenstab, Director of Research & Development Tax Credits
We recently had the opportunity to interview our newest R&D Tax Credit team member, Mark Bodenstab. Mark joined KBKG after retiring from the IRS and will be a national Director providing services out of the Northeast office. In his role at KBKG, Mark will serve in a similar capacity to Jack Jolly who is a … Read More
![[PRESS RELEASE] Former IRS Executive, Mark Bodenstab, Joins KBKG as Director of Research & Development Tax Credits](https://www.kbkg.com/wp-content/uploads/Former-IRS-Executive-Mark-Bodenstab-Joins-KBKG-as-Director-of-Research-Development-Tax-Credits.jpg "[PRESS RELEASE] Former IRS Executive, Mark Bodenstab, Joins KBKG as Director of Research & Development Tax Credits")
[PRESS RELEASE] Former IRS Executive, Mark Bodenstab, Joins KBKG as Director of Research & Development Tax Credits
Pasadena, California – July 30,2019 – Nationwide tax specialty firm KBKG adds another former IRS manager to their team of experts. Mark Bodenstab joins as the firm’s Director of Research & Development Tax Credits with over 30 years combined at the IRS and in the private sector. Mark joined the IRS as a general engineer … Read More
Myth – Claiming R&D Tax Credit Increases the Likelihood of an IRS Audit
The Research & Development Tax Credit is a federal benefit (also available in many states) that was enacted to promote growth, innovation, and inspire advancements in all areas and facets of business. The credit is an undoubtedly beneficial incentive for businesses large and small. However, many companies are hesitant to take advantage of the credit … Read More
Own a Start-up or Small Business? You May Qualify for Federal Research Credits.
Billions of dollars worth of research credits go unclaimed every year in the United States. This is primarily due to many taxpayers not being aware of the credit or not quite understanding it. In addition, when a reference is made to research and development (“R&D”), taxpayers often think about lab coats and test tubes. In … Read More
KBKG Tax Insight: Now Permanent, R&D Tax Credit Offers Unique Opportunity for Manufacturers
With the Research & Development (“R&D”) Tax Credit now permanent and expanded, more and more businesses are taking full advantage of this valuable credit. As manufacturing continues to be a mainstay in the American economy, it’s crucial for owners and operators of these facilities to maximize the opportunity provided by the federal government (some states … Read More
KBKG Tax Insight: R&D Tax Credit – Qualified Research Expenses for Software Development Activities
What software development activities and expenditures can be included in an R&D Tax Credit claim for software projects? Companies performing qualified research in creating or improving their software may qualify for federal and state R&D tax credits for the software development activities they are already conducting. These credits are a dollar-for-dollar reduction in federal and … Read More
KBKG Tax Insight: Major PATH Act1 Changes to the R&D Tax Credit
Major PATH Act2 changes to the R&D Tax Credit for the years beginning after December 31, 2015: The federal R&D Tax Credit has provided taxpayers conducting qualified research a significant tax benefit since it was first signed into law by President Reagan in 1981. Although billions of dollars worth of R&D credits were claimed each … Read More
An Interesting Thread To Pull; The South Carolina R&D Tax Credit
Originally published article by Joseph Toppe from South Carolina Manufacturing Group on August 2, 2018. Stop me if you’ve heard this one before, “South Carolina is a branch manufacturing state.” They tell us there’s not enough headquartering here, not enough research and development, but what if I told you the Palmetto State has a solution, … Read More
After 20+ Years at the IRS Reviewing Corporate Tax Incentives, Jack Jolly Joins KBKG as R&D Director
After 20+ years at the IRS reviewing corporate tax incentives, Jack Jolly still finds joy in his work; showing a great appreciation for those who innovate, dream, and build new software, technology, pharmaceuticals, manufacturing facilities and more. Surprisingly, Jolly’s passion for this industry started well before he worked for the IRS. Recently, we had the … Read More
KBKG Tax Insight: R&D Tax Credits for Software Development Advancements in 2018 & Beyond
Throughout the years, software has found itself into every facet of our lives. From smart phones to smart televisions; many homes are now finding themselves labeled as smart. As the software industry has grown, so too has its piece of the pie as it relates to the Section 41 credit for increasing research activities (the … Read More
KBKG Tax Insight: R&D Credit Opportunity – Improving an Existing Product
Businesses who are creating a brand-new product may be aware that the expenses associated with the cost of developing the prototype, or first article, of that product can qualify for the Research & Development (R&D) tax credit1. Qualifying expenses can include employee wages, materials used in the construction of the prototype and any third-party contractors … Read More
KBKG Tax Insight: Avoid Common R&D Expense Documentation Errors
Business owners are often surprised to learn they may be able to claim the Research & Development (R&D) tax credit. The credit was originally created as way to encourage American companies to conduct R&D activities domestically. While initially thought to apply to large companies with formal R&D departments, “smaller businesses” in a wide range of … Read More
KBKG Tax Insight: Tax Reform & The R&D Tax Credit
It’s been over thirty years since the tax code has been modified to this extent. It has been a talking point for politicians since the Reagan administration brokered the bipartisan Tax Reform Act of 1986. However, the divide between the political parties have kept it a talking point since then, until now. The Tax Cuts … Read More
KBKG Tax Insight: The Effects of Tax Reform on R&D and Orphan Drug Tax Credits
The Senate on December 2, 2017, passed its version of the Tax Cuts and Jobs Act (TCJA) by a vote of 51-49. This is another key step toward passage of this comprehensive tax legislation by year-end. However, the final Senate bill continues to differ from the tax bill passed by the House in mid-November. Although … Read More
KBKG Tax Insight: Maximizing the Value of the R&D Tax Credit – Pharmaceutical & Life Sciences Industry
It is no secret that many Pharmaceutical and Life Sciences companies (“Companies”) conduct research and development activities that qualify for numerous tax incentives, including the Research and Development (R&D) tax credit. Recent groundbreaking legislation created a level of certainty for tax planning purposes and also includes provisions geared towards providing significant benefits to small businesses … Read More
KBKG Tax Insight: Effects of Tax Reform on R&D & Orphan Drug Credits
Senate Republicans released their own version of a tax plan on Thursday (November 9, 2017), just a week after the House proposal was unveiled. Although both plans keep the research and development tax credit in place, changes in the tax code will require some additional planning for taxpayers currently claiming or those planning on claiming … Read More
KBKG Tax insight: Tips for Documenting Qualifying R&D Expenses
Every company seeks effective ways to reduce their overall tax liabilities. Although traditional tax planning can certainly reduce business taxes, there is often a limited impact, leaving owners and managers searching for additional savings opportunities. The good news is that the Research and Development (R&D) Tax Credit is available to qualifying companies that have or … Read More
IRS Issues Guidance Around ASC 730 and the R&D Tax Credit
According to a new guidance released by the IRS, the Large Business and International Division which serves corporations, subchapter S corporations, and partnerships with assets greater than $10 million are instructed to accept financial statements that comply with the GAAP standards as proof of Qualified Research Expenses (QREs). Ultimately, this new directive could lessen the formally … Read More
KBKG Tax Insight: Maximizing the Value of the Orphan Drug Tax Credit
The Pharmaceutical and Life Sciences industry currently faces a range of issues, including the rising costs of discovery and development, major losses of revenue due to patent expirations, and increased complexities due to demanding regulatory requirements. Moreover, developers of orphan drugs must overcome a host of additional challenges that make it difficult to recoup … Read More
KBKG Tax Insight: Illinois Reinstates the R&D Tax Credit
On Thursday, July 6th, the Illinois state legislature successfully voted to override Republican Governor Bruce Rauner’s veto, giving the state its first operating budget in two years. Included in the $36 billion spending plan is an extension of the state’s research and development tax credit through December 31, 2021. The research and development (R&D) credit … Read More
Press Release: KBKG Launches New Payroll Tax Credit Estimator for Small Businesses & Start-Ups
Pasadena, California, May 16, 2017 – KBKG, a nationwide tax services firm headquartered in Pasadena, California, recently launched a free calculator to help early-stage businesses save up to $250,000 in payroll tax. The Research and Development Tax Credit is now permanent, and its benefits extend to small businesses and start-ups who were previously unable to … Read More
KBKG Tax Insight: New R&D Payroll Tax Credit Estimator tool
The R&D tax credit is now permanent and for the first time ever, small businesses and start-ups can take advantage of this lucrative tax credit. Every year, billions of dollars are given to qualified businesses. Estimate your tax savings using our quick, simple R&D Payroll Tax Credit Calculator and save up to $250,000. Author: Kevin … Read More
KBKG Tax Insight: R&D Tax Credits Payroll Tax Offset – Interim Guidance Notice 2017-23
The Treasury Department and Internal Revenue Service (IRS) released interim guidance surrounding the payroll tax credit election available to certain small businesses under Section 41(h) of the Internal Revenue Code (IRC). The addition of the payroll tax offset was introduced as part of the Protecting Americans from Tax Hikes (“PATH”) act of 2015. Notice 2017-23 … Read More
KBKG Tax Insight: IRS Issues Final Regulations Surrounding the Qualification of Internal Use Software towards the R&D Tax Credit
On October 4, 2016, the Internal Revenue Service issued final regulations which provide guidance on the qualification of internal use software (“IUS”) for purposes of the Section 41 Credit for Increasing Research Activities. The final regulations (TD 9786) address many of the comments received regarding the proposed regulations that were released in January of 2015. … Read More
Adjusting (R&D) Tax Credits and NOL Carryforwards in a Year Closed by the Statute of Limitations
When it comes to claiming missed (R&D) tax credits, many taxpayers are unaware of rules allowing them to adjust the carryover from years closed by the three-year statute of limitations without filing amended returns.When a taxpayer does not owe any tax on a return, often they fail to take deductions and credits that they are … Read More
R&D Tax Credit Expanded for Small & Midsize Businesses
Congress is spreading some cheer this holiday season in the form of tax breaks for both businesses and individuals. The Protecting Americans from Tax Hikes (“PATH”) Act of 2015 was passed by both the House and the Senate and is a groundbreaking $650 billion tax extender bill aimed at providing taxpayers certainty and opportunity into … Read More
Tax Extenders Imminent! Congress to Make Key Provisions Permanent and President is Expected to Sign Into Law
Congress is embracing the holiday season by providing taxpayers a gift in the form of tax extenders. The Protecting Americans from Tax Hikes (PATH) Act of 2015 is a bipartisan agreement between both houses of Congress that permanently extends many popular business and individual incentives. President Obama is expected to sign into law in the … Read More
R&D Tax Credit for the Food & Beverage Industry
With the challenge of feeding an ever growing population, food & beverage companies in the United States are forced to increase their research and development efforts to meet demand. In addition to providing more options, food and beverage manufacturers are fighting to keep up with trends in the market place which include the reduction in … Read More
House Passes Permanent Extension of the R&D Tax Credit
On May 20th, the US House of Representatives passed HR 880, making the Research & Development Tax Credit permanent. The House bill is called the American Research and Competitiveness Bill of 2015. HR 880 provides no revenue offsets which will likely be met with a presidential veto, consistent with what President Obama has promised to … Read More
Treasury Releases Guidance on the Allocation of Research Credits Among Members of a Controlled Group
On April 2, 2015, the IRS issued TD 9717 regarding the allocation of the federal research credit among members of a controlled group (i.e., corporations and trades or businesses under common control). These new regulations implement the changes made as a result of the American Tax Relief Act of 2012 (Act) and affirms its own … Read More
R&D Tax Credits for Agriculture and Farming
It may be a surprise to many that food science activities typically associated with agriculture and farming can benefit from the Research & Development (R&D) tax credit. With advances in the food sciences and the challenge of feeding a growing population, those in the agriculture industry have the opportunity to claim and benefit from the … Read More
Treasury Releases Proposed Regulations on R&D Credits for Internal Use Software
On Friday, January 16, 2015, the Department of Treasury issued proposed regulations regarding the applicability and inclusion of Internal-Use Software as part of the IRC Section 41 ‘Credit for Increasing Research Activities,’ providing increased availability of the research and development tax credit for a greater number of entities, particularly small to mid-sized taxpayers. These proposed … Read More
House on the verge of voting on Tax Extenders including the R&D Tax Credit
Last week, congressional aides to Senate Majority Leader, Harry Reid (D-NV), and House Ways and Means Committee Chairman, Dave Camp (R-MI), were reportedly nearing a deal to address many of the tax provisions that expired at the end of 2013. The reported value of the deal was in excess of $400 billion. Many of these … Read More
How will the 2014 Midterm Elections Impact tax extenders?
Not since World War II have Republicans had this large of a majority in Congress. The results from the 2014 midterm election are a staggering blow to Democrats. Prior to the 2014 midterm election, the Democrats had control in the Senate (53 out of the 100 seats with 2 Independents that caucus with the Democrats), … Read More
Research Tax Credit Opportunities for Architects and Engineers
Although Architecture and Engineering (A&E) firms don’t often claim tax credits, many may be eligible for Federal and state research & development (R&D) tax credits without realizing it. Historically, the R&D tax credit was geared to only benefit large companies; mostly in the manufacturing, software, high-tech and pharmaceutical industries. However, significant changes to the tax regulations … Read More
R&D Tax Credit Now Allows ASC on Amended Returns
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 Simplified Credit (“ASC”) calculation methodology on amended returns in cases where the credit was not previously claimed on a return. Prior to this announcement, the taxpayer’s were … Read More
Regulations TD 9666
Today, the Department of Treasury announced regulations TD 9666 that allows companies to claim the R&D Alternative Simplified Credit (ASC) on amended returns. This regulation significantly increases the amount of credit a company can claim. Experts are predicting that this will encourage small and medium size businesses to act and reassess the benefits of claiming … Read More
R&D Tax Credit Update
The federal tax credit for “increasing research activities” – commonly known as the R&D credit – is one of several “tax extenders” currently being discussed by lawmakers. The credit expired at the end of 2013, but the expectation is that it will be renewed, as it has done consistently since the credit was first enacted … Read More
R&D tax credit webinar Q&A session
The R&D Tax Credit program is one of the most valuable tax credit offered by the federal government, and most state government. If your company is doing any type of R&D, you could save hundreds of thousands of dollars annually in state and federal taxes, up to 10% of your annual R&D costs. KBKG is … Read More
Research and Development Webinar Questions and Answers
Questions Asked by Attendees from the Research and Development September 17 Webinar Q: 2 S-Corp owners develop iPhone applications. Gross receipts = $1.5 Million salary, $100 each owner, will they possibly qualify for credit? All corporate tax is passed through to them individually and they are subject to AMT. A: Great question. As you pointed … Read More
Answers to Questions Raised on the R&D Tax Credits Webinar
Thank you for attending our RD 101: Research & Development Tax Credit Overview webinar on 8/20/13. We hope you enjoyed the course and find the information useful towards understanding the R&D Tax Credit. We encourage you to reach out to us for any additional concerns you may have regarding the material covered in class. As promised answers … Read More
Texas Governor Signs R&D Credit Legislation
On June 14, 2013, Texas Governor Rick Perry signed into law HB 800 reinstating the research and development (R&D) tax credit for Texas companies. Although not permanent, both the sales tax exemption and research credit are extended through 2026 and are expected to be a boost to Texas manufacturing and high-technology industries. Details regarding the … Read More
Texas Research and Development Tax Credit Legislation on Governor’s Desk
On May 25, the Texas state senate approved HB 800 and sent it to Governor Rick Perry for his signature. The bill reinstates franchise tax credits for companies conducting qualified research and development (R&D) activities within the state. The Texas R&D credit was repealed in 2006, but proponents of the bill claim the tax incentives … Read More
Maryland’s Research and Development Tax Credit Extended and Annual Limits Increased
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
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
KBKG Responds to Technical Questions Raised on the R&D Tax Credits
Thank you for attending our Research & Development Tax Credit Overview webinar. We hope you enjoyed the course and find the information useful towards understanding the R&D Tax Credit. We encourage you to reach out to us for any additional concerns you may have regarding the material covered in class. We hope that you will … Read More
Tracking Time Spent on R&D
Dallas Business Journal Interviews The KBKG Director of R&D Tax CreditsThe Dallas Business Journal interviewed Bruce Stubbs, Director of R&D at KBKG Inc., in an article titled “Extra Credit for Innovation”. In the interview, Bruce recommends using a time tracking system for employees who are involved in R&D. “Anybody that touches the project, you want … Read More
KBKG Responds to Technical Questions Raised on the R&D Tax Credits
Does the provision for eligible small business credits to eliminate AMT in 2010 carry forward into 2011. If a credit is generated in 2011 can it fully offset AMT? The 2010 R&D generated are the only credits which can be used to offset AMT. This was a special rule for 2010 only. The 2010 credits … Read More