Last year, President Obama made research & development tax credits permanent in his FY2014 budget. Businesses now have another tool to increase cash flow and spawn innovation. Like all tax credits, certain tests must be met to qualify. With Estech Systems (TC Memo 2014-201), the IRS did not believe some were met. The Tax Court took a different view and sided with the taxpayer on most of the tests. The Tax Warriors® give the rundown on this decision.
Tax Warrior Chronicles
The Howard Hughes Company, LLC, et al. v. Commissioner, (2014) 142 TC No. 20