USA R&D credits for a Corporation

[Adam Wascholl]

I have a C-corp client who thinks they're supposed to receive credits for R&D - what are the criteria for receiving them? And, since they're at a net loss, does it matter anyways?

 

[Houston Tax Attorney]

The rules are set out in Sec. 41, the regulations, and various court cases. The short version is that there is a 4-part test and several limitations and exclusions.

For the net loss, yes, it very well may matter. The R&D credit can now offset payroll taxes. Congress added this so that companies in this position can take the credits.

We do this work, as do others. Feel free to reach out if you want us to help quantify the credit.