Roadmapping the R&D Tax Credit over the Last 18 Months

This week on Let’s Talk Tax, hosts ⁠TJ Sponsel and guest Kyle Riddle overview the progression of the R&D Tax Credit over the last 18 months.

The Research and Development (R&D) Tax Credit provides valuable incentives for innovation across industries, including agriculture. However, not all farms are eligible for this tax credit.

Over the last 16 months, McGuire Sponsel has intentionally educated CPAs and clients on the dynamics of 174 amortization. Given the firm’s R&D Tax Credit Practice, we understand our role in addressing the problematic tax legislation putting tremendous pressure on many businesses. 

On March 19, 2024, Michigan’s Senate passed a series of bills that would advance the potential for a research and development tax credit in Michigan for the first time since 2011.

Coined in 2006 by then Google CEO Eric Schmidt, “cloud computing” is a general term that encompasses any shared computer utility that a business and its employees have access to through any computing device at any time and from anywhere. In recent years, cloud computing has become an essential company resource vital to a company’s growth. For taxpayers, correctly calculating the tax treatment of cloud computing expenses for research and development activities has become increasingly important.

The U.S. House of Representatives passed HR 7024, The Tax Relief for American Families and Workers Act of 2024, on Wednesday, January 31, 2024.

The U.S. House of Representatives passed HR 7024, The Tax Relief for American Families and Workers Act of 2024, on Wednesday, January 31, 2024.

Recently, the IRS issued Notice 2024-12, which clarifies previous guidance under Notice 2023-63 regarding the treatment of specified research and experimental (SRE) expenditures under Section 174 for tax years beginning after December 31, 2021.

On January 16, 2024, Senate Finance Chair Ron Wyden (D) and House Ways & Means Chair Jason Smith (R) introduced The Tax Relief for American Families and Workers Act of 2024.

David Seibel and Garrett Duffy join the podcast to discuss qualified research expenditures.