Naples, Fla. — The R&D tax credit is now permanent — so no more political football on that subject every year. Now plastics companies just have to take advantage of it, Micheal Devereux II told attendees at the Executive Forum.
Eligible small businesses can use the credit to offset their Alternative Minimum Tax (AMT).
Many areas can meet the definition of research, including mold design, software for internal use, special equipment, time spend to develop end-of-arm tooling and other costs.
“When have I eliminated uncertainty? That's when the clock stops on the credit,” Devereux said.
He said the IRS also has made it easier to claim the R&D tax credit for past years, with the proper documentation.
Devereux also said the Protecting Americans from Tax Hikes (PATH) Act, which includes some tax incentives that can save manufacturers money, is permanent, but the so-called “bonus depreciation” for capital spending is being phased out through 2019.
“There have been many tax credit developments,” he said.