HOUSTON, Sept. 8, 2011 /PRNewswire/ -- alliantgroup, the nation's premier provider of specialty tax consulting and tax controversy services, recognized the 30th anniversary of enactment of the law establishing the U.S. R&D tax credit and called on the Obama Administration and Congress to move forward with legislative initiatives to extend and expand R&D tax incentives.
"alliantgroup sees firsthand everyday how R&D tax credits and incentives can help small and medium sized businesses across America create jobs, spur innovation and drive growth. To-date, alliantgroup has uncovered more than $1 billion in credits utilizing the R&D tax credit as well as other available credits," said Dhaval Jadav, CEO of alliantgroup. "Unfortunately in the 30 years since the enactment of the law, the U.S. has been eclipsed as one of the leaders in promoting R&D investment. In a hypercompetitive and challenging economic climate, it is critical that our legislators come together to pass laws that restore our prominence in this area.
Originally enacted in 1981, the R&D credit provides businesses with a tax credit of 20% of their research costs, measured in terms of wages, supplies, and contractor costs, which exceed a base amount. Currently, under the Alternative Simplified Credit (ASC), taxpayers may instead opt to claim a credit of 14% of the excess of current expenses over one half the average of the prior three years' expenses.
There are a number of legislative initiatives currently before Congress. Last year, President Obama proposed to make the R&D tax credit permanent and to expand the ASC to a 17% tax credit. The American Research and Competitiveness Act of 2011 would extend the R&D Tax Credit, which is set to expire at the end of 2011, to December 31, 2012 and increase the ASC to 20%. The Life Sciences Jobs and Investment Act of 2011 would offer added R&D incentives to hire additional researchers, make new investments in life sciences research and invest in new research facilities.
"Over the last year, alliantgroup has been helping clients take advantage of important new R&D tax credit laws enacted in states such as Louisiana, Minnesota and Virginia," added Dean Zerbe, national managing director of alliantgroup. "We hope that Congress will soon follow suit and move forward to pass laws that will strengthen the U.S. position in R&D. It is critical to the businesses that can increase employment, revive our economy and keep our country as the innovation leader."
Dean Zerbe authored an Opinion Editorial in today's edition of Roll Call underscoring the success of the R&D tax credit over the last 30 years and its untapped potential to help the economy and create jobs tomorrow, and for another 30 years.
alliantgroup is the nation's premier provider of specialty tax services. Headquartered in Houston, TX, alliantgroup works with accountants and their clients to ensure that they receive the full benefits of all available federal and state government sponsored tax credit and incentive programs, such as the research and development tax credit, export tax incentives, manufacturing tax incentives, federal and state hiring credits, sales and use tax refund reviews, and a dedicated tax controversy services team. For additional information please visit www.alliantgroup.com.