HOUSTON, Dec. 18, 2015 /PRNewswire/ — On December 18, the president signed into law tax extenders legislation that will extend over 50 expired provisions of the tax code, including several key pro-business initiatives. Among the most vital aspects of the legislation, the extenders bill will expand and make permanent the Research and Development (R&D) Tax Credit, providing U.S. companies much needed certainty and greater access to one of the most valuable and pro-growth tax incentives.
The two key expansions to the R&D Tax Credit will begin in 2016. First and foremost, businesses with less than $50 million in gross receipts will now be able to claim the credit against their Alternative Minimum Tax (AMT), thereby removing the single greatest barrier preventing companies from claiming the credit in the past. Secondly, the bill includes a provision that opens the credit up for start-ups, allowing businesses with gross receipts of less than $5 million a year to take the credit against their payroll taxes (capped at up to $250,000 per year) for up to five years.
alliantgroup commends these commonsense solutions and the bipartisan work it took to get the extenders deal to the finish-line. The changes to the R&D Tax Credit and other business-friendly provisions such as the extension of the Section 179D tax deduction for energy-efficient commercial buildings will be a massive help to companies across the nation, putting valuable tax dollars back into the pockets of U.S. businesses for job creation and growth.
Such a massive undertaking, particularly with regards to the R&D Tax Credit and Section 179D, which both took several years of hard work and negotiations to come to fruition, could not have happened without several congressional members leading the charge for U.S. businesses. In particular, alliantgroup would like to thank Congressman and House Ways and Means Committee Chairman Kevin Brady (R-TX) for his leadership in seeing the extenders deal through – we are indebted to his support, which was essential in creating permanency for the R&D Tax Credit as well as the AMT turnoff. We would also like to thank Senators Ron Wyden (D-OR) and Orrin Hatch (R-UT) for their leadership in making the entire deal happen and for their championing of the R&D credit. Also, our thanks go out to Senators Pat Roberts (R-KS), Chuck Schumer (D-NY) and Chuck Grassley (R-IA) for their vocal support for the AMT turnoff and Senator Chris Coons (D-DE) for his championing of the start-up provision. And, Senator Ben Cardin (D-MD) deserves our many thanks for his exhaustive efforts with 179D and its two-year extension.
Lastly, alliantgroup would like to offer its most sincere appreciation to our clients and CPA partners that took the time to call and write their representatives on the importance of these incentives. Such grassroots efforts matter and are of the utmost importance in creating legislation that works for all taxpayers. Today we are witnesses to what true grassroots action can do.
alliantgroup’s mission is one of education and awareness—we exist to help industry organizations, U.S. businesses and the CPA firms that advise them, take full advantage of all federal and state tax credits, incentives and deductions available to them. Our government has legislated these powerful incentive programs to help businesses grow and successfully compete both in the U.S. and abroad. We are proud to have helped over 20,000 businesses claim more than $5 billion in tax incentives. alliantgroup’s headquarters is in Houston, Texas, with offices across the country including New York, Boston, Chicago, Orange County, Sacramento, Orlando, Indianapolis and Washington, D.C.