Changes Coming to the R&D Tax Credit Next Year
This article discusses a potential change that could be occurring for taxpayers that receive the research and development tax credits. Currently, immediate expensing is allowed for taxpayers who are granted R&D credits. However, the Tax Cuts and Jobs Act is set to eliminate immediate expensing starting in 2022. This Act operates under an amortization method over five years for taxpayers. However, H.R. 1304, the American Innovation and R&D Competitiveness Act of 2021, “seeks to repeal the TCJA ruling; it is part of President Biden’s proposed Build Back Better Act, and it’s designed to delay the amortization rule until 2026.” Be sure to check out this link for more details, and be sure to stay on top of the latest legislation!
To view this article, click HERE to access the original content.