Under the provisions of ATRA, corporations or consolidated groups with AMT credits from pre-2006 tax years may continue to accelerate the use of these credits instead of claiming bonus depreciation for eligible qualified property.
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Credits
Avoiding Income Tax Credit Recapture by a Corporation
A corporation that disposes of real property may be required to increase its tax liability via a recapture of the investment tax credit or the low-income housing credit.
Employers Have Additional Time to Claim Work Opportunity Tax Credit
The IRS announced that it is extending the time employers who want to claim the WOTC have to file the prescreening notice and certification request.
R&D Tax Credit Update: Recent Court Decisions Shed Light on Key Issues
The Sec. 41 R&D tax credit continues to be an important incentive for many companies; however, the incentive effect is often dampened by challenges in identifying, documenting, and defending the credit.
IRS Offers Guidance on Accounting for Black Liquor Credit Repayments
The IRS Chief Counsel’s Office addressed under what circumstances interest must accompany a repayment of the alternative fuel mixture credit received and during what year taxpayers converting the AFMC into the cellulosic biofuel producer credit should include that credit in income under Sec. 87.
Rehabilitation Credits Disallowed
The Third Circuit held that a corporate partner in a partnership was not entitled to claim historic rehabilitation credits passed through to it from the partnership because the corporation was not a bona fide partner in the partnership.
R&E Credit Opportunities for the Construction Industry
Taxpayers in the construction industry may want to consider the Sec. 41 research credit.
Tax Court Defines Gross Receipts for the Research Credit
The Tax Court clarified that nonsales income is included in gross receipts for purposes of the Sec. 41 research credit.
What’s New With the New Markets Tax Credit?
The IRS published final regulations relating to how an entity serving targeted populations can meet the requirements to be a qualified active low-income community business under the provisions of the new markets tax credit program.
R&D Tax Incentives Around the World
With the R&D credit in limbo, now is the time to reevaluate the entire system by looking at other countries’ R&D tax incentives.
Going Green Yields Immediate Tax Savings
Taxpayers may not be aware of many tax incentives are available at the federal, state, and local levels to defray the costs of energy-efficient equipment and systems.
Federal Income Tax Treatment of Certain Transferable State Tax Credits
The emergence of online marketplaces and auction houses has provided a single point of contact for both sellers and buyers, making sales and purchases of transferable state tax credits more common.
Lack of Gross Receipts Does Not Preclude Taxpayers from Claiming R&D Credit
Some practitioners incorrectly assume that lack of gross receipts precludes taxpayers from taking the R&D credit. They should take a look at situations in which they may have forgone the credit because the taxpayer had no gross receipts to ensure that the taxpayer has obtained the maximum allowable credits available to it.
Work Opportunity Credits for Veterans
The IRS issued a notice that gives employers guidance on two new tax credits for qualified veterans and provides extra time to comply with some of the credits’ requirements.
Guidance Issued on Work Opportunity Credit for Veterans
The IRS issued a notice that gives employers guidance on two new tax credits for qualified veterans and provides extra time to comply with some of the credits’ requirements.
Low-Income Community Businesses and New Markets Tax Credit Regs.
The IRS issued final regulations on how entities serving certain targeted populations can qualify as active low-income community businesses for purposes of the Sec. 45D new markets tax credit.
Government Contractor Withholding Repealed and Veterans Job Credits Enacted
President Barack Obama signed into law repeal of a requirement that 3% of payments to any person for services or property be withheld by the federal or state governments or their instrumentalities or subdivisions (including multistate agencies).
Increased Focus on and Potential Ramifications of R&E Expenditures
Many taxpayers may have noticed a recent increased IRS focus on R&E expenditures. As a result of this increased focus, it is time for taxpayers to increase their focus as well.
Final Regs. Issued on Low-Income Community Businesses and New Markets Tax Credit
The IRS issued final regulations on how entities serving certain targeted populations can qualify as active low-income community businesses for purposes of the Sec. 45D new markets tax credit
Witnesses Tell Congressional Subcommittee Small Business Health Tax Credit Is Too Complicated
A tax credit enacted to encourage small businesses and tax-exempt organizations to provide health insurance coverage for employees is too complicated and is not meeting its goal, witnesses told a congressional panel on November 15.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
