Credits

Topics

December 1, 2009

Grants in Lieu of Business Energy Credits

The American Recovery and Reinvestment Act of 2009 included the option to receive a cash grant in lieu of taking the business energy credit for taxpayers who place in service specified energy property.

November 1, 2009

Electing to Accelerate AMT and Research Credits in Lieu of Bonus Depreciation

The Housing Assistance Tax Act of 2008 allows corporations to make an election to forgo bonus depreciation and instead claim an accelerated pre-2006 research and/or AMT credit.

October 1, 2009

Proposed Regs. Would Simplify Reduced Research Credit Election

On July 15, the IRS released proposed regulations that simplify the procedures for taxpayers claiming the reduced research credit under Sec. 280C(c)(3) (REG-130200-08).

October 1, 2009

IRS Further Clarifies WOTC “Disconnected Youth” Definition

The IRS released a notice defining the terms “unemployed veteran” and “disconnected youth” for purposes of the Sec. 51 work opportunity tax credit.

August 1, 2009

IRS Notice Provides Work Opportunity Tax Credit Definitions

The IRS has released a notice that defines the terms “unemployed veteran” and “disconnected youth” for purposes of the Sec. 51 work opportunity tax credit.

March 1, 2009

Sec. 168(k)(4) Credit in Lieu of Bonus Depreciation

As part of the Housing and Economic Recovery Act of 2008, Congress enacted a special tax benefit under Sec. 168(k)(4) that allows corporations to claim a refundable tax credit in lieu of 50% bonus depreciation for certain capital investments made during the period April 1–December 31, 2008

January 1, 2009

Research Credit Extended

Emergency Economic Stabilization Act of 2008 retroactively extended the research credit to amounts paid or incurred after December 31, 2007, and before January 1, 2010.

December 1, 2008

IRS Issues Guidance on Energy Credit

The IRS issued Notice 2008-68 to provide taxpayers with guidance on the computation and availability of the energy credit.

September 1, 2008

Alternative Simplified Method for Claiming the Research Credit

Editor: Frank J. Oâ€™Connell Jr., CPA, Esq. On June 17, 2008, the IRS issued final and temporary regulations (T.D. 9401, Temp. Regs. Secs. 1.41-6T(j), 1.41-8T(b)(5), and 1.41-9T(d)) relating to the alternative simplified credit (ASC) method of computing the research and experimentation credit under Sec. 41(c)(5). The ASC was enacted in

June 1, 2008

Reduced Credit for Increasing Research Activities

A recent IRS chief counsel internal memorandum, AM 2008-002 (2/8/08), provides insight relative to electing the reduced credit available under Sec. 280C(c)(3) when claiming a research tax credit.

November 1, 2007

The WOTC Expanded

Editor: Kevin F. Reilly, J.D., CPA The work opportunity tax credit (WOTC) has been in existence for years; however, the Small Business and Work Oppor-tunity Tax Act of 2007, P.L. 110-28 (SBWOTA), expanded the definition of some of the target groups, creating tax incentives that will affect more clients than

May 1, 2007

Tax Incentives for Businesses in Distressed Communities

Executive Summary Businesses in designated EZs and RCs may be eligible for an employment credit, increased Sec. 179 expensing, tax-exempt bond financing and other tax incentives. A capital gain deferral applies to purchased EZ assets; a 60% exclusion applies to small business EZ stock. Enterprise zone facility bonds may be

May 1, 2007

Biomass and Notice 2006-88

As concerns for the nation’s energy supply have risen, the Federal government has periodically provided various incentives to encourage the use of renewable energy sources. Under Sec. 45, Congress provided for a renewable production credit for electricity produced by a taxpayer from qualified energy resources (wind, closed- and open-loop biomass,