Why research funding sources complicate tax credits

By Christopher D. Cook, CPA | August 20, 2021

The R&D Tax Credit offers a significant tax incentive for companies in a broad spectrum of technology-based industries. The credit has been part of the Internal Revenue Service tax code since 1981 and is responsible for billions of dollars in tax savings each year. It has gained even more popularity as a result of modifications included in the Protecting Americans from Tax Hikes Act (PATH) of 2015. Along with making the credit permanent, the PATH Act also allowed the R&D Tax Credit to offset alternative minimum tax (AMT) for certain eligible small businesses, which in previous years was a significant restriction for many taxpayers.

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For more information relating to Research and Development, contact Christopher Cook, CPA with Anglin Reichmann Armstrong, P.C.

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