DALLAS, Dec. 21, 2015 /PRNewswire/ -- On Friday, December 18, 2015, President Barack Obama signed into law the Protecting Americans from Tax Hikes (PATH) Act of 2015. Front and center in this legislation was Congress's decision to finally make permanent the credit for increasing research activities (R&D Tax Credit).
In addition to making the credit a permanent part of the Internal Revenue Code, additional improvements to the benefit (beginning in 2016) will permit companies averaging less than $50 million in gross receipts for the prior three years to claim any credit generated against Alternative Minimum Tax (AMT) while permitting some start-up companies averaging less than $5 million in gross receipts to apply the credit against, up to $250,000 per year, in payroll taxes.
This is extremely exciting news for companies that design, develop, and/or improve upon products, processes, techniques, formulas, inventions, or computer software as they will be able to recoup a portion of the costs expended to conduct the activities associated with this work.
With the permanency now provided, businesses of all sizes will have the ability to conduct more accurate yearly tax planning, feel confident making expenditures that seek to improve upon their ability to compete in the marketplace, and can rest assured that Congress and the President fully support their efforts to invest in the technological advancement of our economy.
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a three-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.
TECHNICAL INFORMATION CONTACTS:
Michael A. Thompson