R&D Articles

Information and Education on the Research & Development Tax Credit

“Final Regulations Further Expand the R&D Tax Credit for Software Development”

Taxpayers, especially financial institutions, were pleasantly surprised in early 2015 when the Treasury/IRS issued proposed regulations, relating to the treatment of software development under the Section 41 Research Credit.

Although the proposed rules appeared very favorable, and would likely allow credit eligibility to most customer-facing type application development, some of the proposed provisions were likely to also  cause significant confusion not only for taxpayers but for the IRS as well—and thus certainly result in future tax controversy.


“Recent Changes to the R&D Tax Credit Provide Improved Incentives for Businesses”

With new R&D Tax Credit savings opportunities available, many more businesses will find themselves with vast new opportunity to lower their tax burden.

In a Sept/Oct 2017 article written for the Ohio Society of CPAs (OSCPAs) CPA Voice magazine, Tax Credits Group President Michael Krajcer provides readers with an overview on these recent favorable changes which stem from new payroll and Alternative Minimum Tax (AMT) offsets, and the issuance of Final Regulations relating to Internal Use Software (IUS) development.


“Using Tax Credits To Encourage Innovation”

With new R&D Tax Credit savings opportunities available at the federal and state level, innovative businesses have vast new opportunity to lower their tax burden


“Encouraging Innovation: New Federal and Virginia Opportunities with R&D Tax Credits”

Many businesses within the state of Virginia are eligible to have part of their research and development expenses subsidized by the federal and state government.  Yet, many go unaware of this tax savings opportunity.


“Taxpayer-Favorable Regulations Expand the R&D Tax Credit for Customer-Facing Software Development”

Recognizing the vital role that computer technology plays in the U.S. economy, the IRS has issued proposed regulations expanding the research credit for software development.  In this 2015 Journal of Taxation article, Tax Credits Group President Michael Krajcer provides readers with an understanding of why financial institutions in particular will benefit from these new rules, which focus on software that enables third-party interaction with businesses.

“Favorable Ruling in FedEx Case Provides Opportunity for Financial Institutions Developing Internal-Use Software to Claim the Research Tax Credit”

In 2009, The U.S. District Court for the Western District of Tennessee held that the Internal Revenue Service could not require FedEx to apply the so-called “discovery” test in order to claim the research credit for its development of internal-use software.

“Recent Extension and Modification of the Research Credit Provides New Opportunities for Financial Institutions”

In 2007, Tax Credits Group President Michael Krajcer authored an article for the Journal of Taxation detailing the changing, favorable landscape of the Research & Development tax credit, specifically as it related to financial institutions.