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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
Research and Experimentation Tax Credit Extended Through 2013

DALLAS, Jan. 16, 2013 /PRNewswire/ -- As a part of the "Fiscal Cliff" deal (H.R. 8: American Taxpayer Relief Act of 2012), Congress retroactively extended the Federal Research and Experimentation Tax Credit ["R&E Credit," also commonly referred to as the "Research and Development (R&D) Tax Credit"] until the end of 2013. The R&E Credit, which expired at the end of 2011, has now been extended 14 times since its introduction in 1981.


H.R. 8 includes minor changes to the law in areas involving acquisitions, but in general, the scope of the R&E Credit remains unchanged. The regular research tax credit remains equal to 20% of the amount by which a taxpayer's qualified research expenses for a taxable year exceed its base amount for that year, and the law continues to provide an alternative simplified credit of 14%. Changes to the R&E Credit include modifications to the rules for taxpayers under common control and rules for computing the credit when a portion of a trade or business changes hands, which increases the potential credit for businesses that acquire other companies.

Reacting to the successful passage of the deal to avoid the fiscal cliff, President Obama stated: "We can't keep cutting things like basic research and new technology and still expect to succeed in a 21st-century economy."

Ryan's Research and Development Tax Credit services utilize leading quantitative and qualitative review techniques to minimize onsite disruptions, while properly identifying and substantiating qualified R&D costs. Ryan provides a customized time analysis and documentation process, which is able to develop nexus, even where no project accounting exists, and provide the detailed documentation, including responses to the Mandatory Information Document Request (IDR), required to achieve a sustainable research credit. In addition, Ryan provides tailored recommendations to maximize future credits, as well as defense of R&D tax claims.


Andy Hammons

Stephanie Shell-Condon


About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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