The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 extended the R&D credits for another two years. Because of the heavy burden in producing document and calculating the traditional fixed base percentage, many companies opt for the Alternative Simplified Method despite yielding a lower credit percentage. There was a big push to increase the Alternative Simplified Credit percentage from 14% to 17%, but the Tax Act didn’t go that far. For the next two years, taxpayers who choose to use the ASC method will have to live with the 14%.
Posts Tagged ‘R&D Credit’