The “Ins and Outs” of Software Research and Development

Late last year a Research and Development case highlighted the importance of understanding the subtleties of qualifying software R&D claims. The case, the United States of America vs. Davenport, Civil Action No.: 3:09-CV-2455-L reached judgment in the Northern District of Texas, Dallas Division of the U.S. District Court ruled in favor of the IRS over […]

The American Taxpayer Relief Act of 2012

H.R. 8, “The American Taxpayer Relief Act of 2012,” passed the Senate and the House, with the President signing the bill on January 3, 2013. There were a number of business and energy tax extensions in the bill that included among others the extension and modification of the research (R&E) credit. The R&E credit has […]

Where’s the R&D as an Outcome of Fukushima?

Our last article focused on new EPA regulations that are prompting significant research and development activities for most utilities. We’ve also written in the past regarding the expected impact of the Japanese accident at Fukushima on the Nuclear Industry and new R&D that will be performed. Here’s an update on expected areas that will require […]

EPA 316(b) and Mercury Reduction Proposed Regulations and Associated R&D

The Environmental Protection Agency (EPA) has a number of proposed regulations; however, two in particular will present significant R&D opportunities for a number of utilities. With the addition of these two proposed rules, a number of electric generation facilities will be required to perform research to determine the best available technology (BAT) and/or combination of […]

Extending Nuclear Plant Life Beyond 60 Years

“Simply put, sound research is key to determining whether extended operation beyond 60 years can be safe and, if it can, what measures need to be taken to ensure safe operation. The industry must take the lead on these research activities.” U.S. Nuclear Regulatory Commission Chairman, The Honorable Gregory B. Jaczko[1] Although 61 nuclear plants […]

Will the R&D Tax Credit be made permanent?

U.S. Senator Kirsten Gillibrand announced a new proposal to spur innovation and job creation through the simplification, expansion, and make permanent the Research and Development (R&D) Tax Credit. Per Sen. Gillibrand’s Press Release on January 28th, expanding the R&D Tax Credit would create more than 162,000 jobs nationwide, according to the Information Technology and Innovation […]

R&D Tax Credit for 2010

As you are likely aware, the Research and Development (R&D) Tax Credit has yet to be renewed for the 2010 tax year. Historically, the tax credit has expired and been retroactively renewed five times in its brief history. While there are no certainties, it is highly likely that the R&D Tax Credit will be renewed […]

Proctor & Gamble vs. United States of America Ruling

On June 25, 2010, the U.S. District Court ruled on The Proctor & Gamble Company (P&G) vs. United States of America in favor of P&G. P&G and the IRS have had a long-standing accepted method on Gross Receipts computation as it relates to the Section 41 credit determination. Historically, the accepted method was to treat […]

Appeals Settlement Guideline for Qualified Research Expenses – Extraordinary Expenditures for Utilities

An Appeals Settlement Guideline for Qualified Research Expenses – Extraordinary a for Utilities, UIL 41.51-01 was released in late March that provides guidance on whether amounts incurred by a taxpayer for utilities expenses in buildings in which qualified research was conducted (“Research Buildings”) are qualified research expenses as defined in I.R.C. Sec. 41(b). Background: Taxpayers […]