Research Credit Updates

By Nicholas Taylor for Moss Adams, LLP

When running a business it’s important to make sure that you are aware of changes in legislation and new opportunities that arise as a result.  One of the provisions of the PATH Act of 2015 retroactively restored and made permanent the credit for increasing research activities, or the research credit.

The research credit allows taxpayers to claim a general business credit allowed for qualified research expenses paid or incurred for qualified research activities.

Qualified research activities are generally technological in nature and are intended to develop new or improved business units.  Qualified research usually has the objective to develop a new or improved function, performance, or reliability/quality.  Some research activities, relating to cosmetic, style or other upgrades to existing business units may not qualify.  It is always a good idea to consult your CPA before beginning an activity you think may qualify.  See link for full details.

Moss Adams March 2016 Research Credit Updates