Qualifying Expenses for the Expanded Research and Development Credit.

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  • Additional Information
    • Subject Terms:
      RESEARCH & development; SOCIAL science research; COST; CREDIT; ALTERNATIVE minimum tax
    • Abstract:
      [The amount of credit in any taxable year is the amount equal to the excess of the amount of credit determined under section 41(a) without regard to section 280C(c)(3), over the product of the amount of credit.] Corporate taxpayers can now use both AMT credit carryovers and R&D credit carryforwards to offset future taxes. Taxpayers may consider incurring planned R&D expenditures prior to 2022 in order to take advantage of the ability to currently deduct research or experimental expenditures under section 174 and claim reduced credit under section 280C. Some taxpayers may only engage in contract R&D and not in-house R&D. To continue the earlier example, the taxpayer should identify all in-house R&D associated with Activity 1, and all those expenditures should be categorized as Activity 1 R&D expenditures. [Extracted from the article]
    • Abstract:
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