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 […]

Research and Development Claim Ruling by U.S. District Court

On January 29th, the U.S. District Court for the Northern District of Texas (Dallas Division) issued its ruling in the Trinity Industries, Inc. v. U.S. The Court’s ruling is another in a long line of recent major court cases regarding R&D Tax Credits cases. Trinity is a large corporation engaged in a variety of businesses. […]

R&E Tax Credit Extension – Update

As you are likely aware, President Obama’s 2011 Budget Proposal recommends making permanent the Research and Experimentation (R&E) Tax Credit, which at this time remains expired as of the end of 2009. The President has shown consistency in his support of science and the advancement of technology. As quoted in the Tech Daily Dose, National […]

Carbon Emission Requirements – Potential Driving Force for Big Industry R&E

photo credit: James Jordan If Congress doesn’t do it, the Environmental Protection Agency (EPA) will, that is, they will severely restrict Greenhouse-Gas emissions for large industrials. Consider the impact of the following scenarios on your company’s potential investment in plant retrofit requirements: EPA’s proposed requirements for new, large industrial facilities and existing ones (power plants, […]

United States Vs. McFerrin No. 08-20377 …

A Step in the Right Direction In a step forward, the fifth circuit has correctly interpreted the Section 41 R&E Credit Rules and applied them retroactively to void prior decisions and misinterpretations of the tax code. Case Background: McFerrin, co-founder of KMCO, Inc. a manufacturer of commodity and specialty chemicals, mainly to the petrochemical industry, […]

American Recovery and Reinvestment Act and Energy Research and Development

The American Recovery and Reinvestment Act (ARRA) provides $3.4 billion to the Department of Energy (DOE) for the purpose of funding initiatives focused on research, development and deployment of technologies to use coal more cleanly and efficiently. The DOE is anticipating issuing Funding Opportunity Announcements (FOA’s) in March 2009 for the following initiatives: $800 million […]

Eye’s Forward

In the November 2008 BCP R&E Newsletter, we discussed a few areas of future growth and research & development in the energy industry – namely Distributed Energy and Carbon Management. With the current Obama-Biden Economic and Stimulus Plan likely to pass, there are several key components related to R&E that you should keep on your […]