R&D Tax Credit

Looks like they might change it in November (so pretty much screwed for this filing season).

Also sounds like they wont do a retrospective change.

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This is going to absolutely decimate some companies with what the tax bill will be.

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Agreed. Some won’t be able to pay.

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What is absurd, is even if you decide not to apply for the credit going forward, you still have to capitalize the expenses since you had applied for it in the past.

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Should’ve said. The expectation is they will let you out of that election next year. Unclear if you’ll continue to amortize 2022 costs over the remaining 4 1/2 years but sounds like you won’t have to capitalize 2023 costs at all.

I do caveat everything because we expected this to go away before it ever became an issue in the first place but here we are.

It’s crazy. There is mass bipartisan support against this. Unfortunately being used as a political tool for other purposes.

If you’re a government contractor, you need to look into your contracts. There’s an argument that T&M and cost plus contracts shouldn’t be included. Obviously depends on your circumstances and you’d need to talk to your accountant about it.

It's not going to kil R&D. Companies will continue to do it, they just want get free money anymore.

That's not really what is happening here at all.

No kidding. What's your point?

Oh we've already settled what we will do, depending on what happens by the 15th, was just curious if any here were also dealing with it and what others were hearing.