Major changes to both the Virginia and federal research tax credits take effect this filing season


In a March 2017 Virginia Society of CPAs (VSCPAs) article appearing in Disclosures magazine, “Using Tax Credits to Encourage Innovation”, Tax Credits Group President Michael Krajcer provides readers with an understanding of the major changes to both the federal and Virginia research tax credits which take effect this filing season. The culmination of the many favorable changes at the federal and Virginia state level will allow significantly more taxpayers to utilize the incentives in far greater amounts than ever before.

In the article, Krajcer discusses the following topics:

New Federal Benefits:

  • The new Payroll Tax Credit offset which offers significant cash savings opportunities to qualifying small businesses who previously could not benefit from the credit due to little or no income tax liability
  • The new Alternative Minimum Tax (AMT) offset which allows eligible small businesses impacted by AMT to utilize the federal credit to alleviate this burden
  • Why final regulations relating to Internal Use Software (IUS) development will help qualifying businesses once locked out of the opportunity due to stringent eligibility requirements, to finally find themselves with new opportunity for tax relief

Enhanced Virginia State Credit:

  • How the new Virginia Major Research & Development Expenses Tax Credit will help large Virginia businesses investing significant dollars into R&D offset more of their investment costs
  • Why enhancements to the Virginia state credit will allow smaller businesses to enhance their credit claims due to the increased claim amounts

To learn more about the many new tax savings opportunities awaiting innovative businesses, download the full article at:

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