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 ‘Tax Relief Act of 2010’
On December 17, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. The Tax Relief Act extended many important tax rates and programs and some have been curiously left out. On the Federal level, the Act extends the Empowerment Zones for two more years, but not the Renewal Community Zones. Fortunately for tax payers, the Empowerment Zone credit per employee is twice the amount of the Renewal Community credit.