In this lunch and learn session, Jim Bourke will discuss the new R&D credit rules.
The modification of the R&D credit, enacted as part of the 2015 PATH ACT, creates a major cash saving opportunity for startup and small businesses. Qualifying companies can put the credit to use towards their payroll tax liabilities and keep the cash where it matters most - invested in their business.
For tax years beginning on or after January 1, 2016, Qualified Small Businesses ("QSBs") will be able to elect to apply the R&D credit towards their payroll tax liability rather than their income tax. As a result, the benefit of the R&D credit that was once limited to profitable companies can produce substantial cash savings in the technology startup and life sciences industry, where early-stage tax losses are prevalent and the R&D credit typically goes unused.
Participants will walk away with an understanding of this enhanced credit and the value that it can bring to the cash flow stream of the business.