When President Obama signs The American Taxpayer Relief Act of 2012 (ATRA) today, the research tax credit which expired at the end of 2011, will be retroactively reinstated for 2012 and extended through Dec. 31, 2013. The research tax credit provides companies with a tax credit based on a company’s investment in technology and employment within the United States. The new legislation provides for both a retroactive reinstatement of the research tax credit for 2012 and a one-year extension of the credit through Dec. 31, 2013. The requirements and rate of the tax credit remain unchanged.
Over the last several months we’ve been helping businesses plan to maximize research tax credit opportunities for 2012 and 2013. Let us help you minimize taxes and increase your return on investment in engineering and technical know-how by taking advantage of the benefits that can be obtained from the research tax credit. Contact your Baker Tilly tax advisor or send an e-mail to firstname.lastname@example.org to get a jump start on your 2012 Research Credit computation and planning to maximize your 2013 qualified research expenditures.
Please also see our tax alert, "Tax legislation—Congress addresses cliff," for more information on the number of business tax provisions included in the ATRA.