On December 20, 2006, President Bush signed into law the Tax Relief and Health Care Act of 2006, Public Law No. 109-432. This act retroactively extends the federal credit for research and development from January 1, 2006 through December 31, 2007. The act also:
• increases the Alternative Incremental Research Credit rates for 2007;
• creates a new Alternative Simplified Credit for 2007 that does not use gross receipts;
• provides late election relief for fiscal year taxpayers who were unable to make an Alternative Incremental Research Credit election or a Code section 280C reduced credit election on returns for years ending during 2006; and,
• provides transitional calculation rules for fiscal year taxpayers who utilize either the Alternative Incremental Research Credit or the new Alternative Simplified Credit for years ending in 2007.
For more specific information, click here.
To see how this affects you or your clients, please contact:
Bill Kuhlman CPA
Director of R&D Tax Credit
SourceCorp
817.732.5494 ext 132
bill.kuhlman@sourcecorptax.com
