Included in the 2010 Patient Protection and Affordable Care Act are a few new income tax credits. In particular, there is one that many new startups and growing health care industry enterprises may benefit from—the qualifying therapeutic discovery project credit (Sec. 48D).
Advertisement
Topics
Credits
Analyzing the Tax Implications of Grants Received for Investment Tax Credit–Eligible Property
The recent availability of grants in lieu of the production tax credit (Sec. 45) and the investment tax credit (Sec. 48) has become a well-documented source of funding for the installation of certain energy property.
Closing Date Deadline for Homebuyer Credit Extended to Sept. 30
The Homebuyer Assistance and Improvement Act of 2010 extends the closing date deadline to qualify for the first-time homebuyer credit under Sec. 36 to September 30, 2010.
Tax Benefits for Education
An array of tax benefits are available to taxpayers, including income exclusions for educational assistance, scholarships, and distributions from qualified tuition plans and educational IRAs, as well as credits for tuition and certain education-related expenses and a deduction for tuition payments.
District Court Allows R&D Credit for Prototype Costs
In a recent case, the court held that the taxpayer is, in certain situations, entitled to the Sec. 41 research credit for qualified research expenditures (QREs) for activities relating to the design, development, and construction of new types/classes of ships.
IRS Publishes FAQs on Small Business Health Care Credit
On April 1, the IRS published on its website 22 questions and answers about the new small business health care tax credit.
Overpayment Interest Accrues on First-Time Homebuyer Credit
The Office of Chief Counsel (OCC) advised that the Sec. 6111 general interest rules applicable to overpayments of tax apply to the first-time homebuyer credit.
Congress Enacts Hiring Incentives Act with Tax Provisions
The Hiring Incentives to Restore Employment Act contains several tax items, the biggest of which is a payroll tax credit for employers who hire workers who have been unemployed for at least 60 days and who are not replacement hires.
Substantiating the Research Tax Credit
Research tax credits present unusual problems of documentation and support. Substantiating activities and expenses to meet the statutory definition of “research” often requires subjective judgments, subject to disparate interpretations.
Growing Opportunities: The Agricultural Chemical Security Credit
Taxpayers that deal with fertilizers and pesticides should consider their own facts and circumstances to determine how the agricultural chemical security credit might apply.
Individual Taxation: Digest of Recent Developments
This article covers recent significant developments affecting taxation of individuals, including legislative changes, cases, regulations, and other IRS guidance.
Improved Education Credit Opportunities for High-IncomeTaxpayers
For 2009 and 2010, the American opportunity tax credit provides increased credit amounts for higher education expenses. This article discusses how taxpayers can best take advantage of the credit.
Definition of Supplies Clarified for Purpose of R&D Credit
Taxpayers that use supplies in their research and development (R&D) efforts should reevaluate the costs they include in their R&D credit computations in light of a recent Tax Court decision (TG Missouri Corp.).
Homebuyer Credit, NOL Carrybacks Extended; Mandatory E-Filing Enacted
The Worker, Homeownership, and Business Assistance Act of 2009 contains a handful of tax provisions. These include changes to the first-time homebuyers’ credit, increased NOL carrybacks for small businesses, and mandatory e-filing for most tax return preparers.
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.
ARRA Expands Hope Scholarship Credit
The American Recovery and Reinvestment Act includes an expansion of the Hope scholarship credit that will provide additional support to many American families that have members attending post-secondary educational institutions. The expanded credit, called the American opportunity tax credit, modifies the existing Hope credit for tax years 2009 and 2010.
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.
Individual Taxation Report
This article covers recent significant developments affecting taxation of individuals, including cases, IRS guidance, and legislative changes.
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).
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.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
