R & D Tax Credit 2016 Update
There were some critical changes to the research and development tax credit for the 2016 tax year. The first has to do with payroll taxes for startups. For a small business to qualify one must have gross receipts of less than $5,000,000 and NOT have had gross receipts for a tax year before 2012. The current year payroll taxes are capped at $250,000. The second major change is the credit will be able to offset AMT (Alternative Minimum Tax). In order to qualify a small business must not be publicly traded, be a partnership or sole proprietorship, and have a three year average annual gross receipts not to exceed $50,000,000. The last significant change gives the credit a little more stability in the fact it was made permanent going forward in 2016. See our R & D Tax Credit page for more detail or give us a call to see if your company qualifies with the new changes.
Scott Steineman, CPA