Tax Point Advisors applauds new VT state R&D tax credit in 2011

Jan. 29, 2011 - PRLog -- A new tax credit becomes available this year to eligible Vermont businesses for research and development investments made in Vermont starting Jan. 1, 2011.

The tax credit was enacted by the Vermont General Assembly in 2009, but became effective for R&D expenditures made on or after Jan. 1, 2011. Availability of the tax credit relied on an extension the federal R&D tax credit, which occurred in December 2010 when President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. The federal R&D Tax Credit will be extended through December 2011.

Vermont companies that make eligible research and development expenditures in Vermont can claim a tax credit equal to 30 percent of the federal tax credit allowed in the taxable year. Eligible research and development investments are the same as those defined by the federal R&D tax credit under Section 41(a) of the IRS Code, which are made in Vermont. If the tax credit cannot be applied in the year earned, the taxpayer can carry forward the credit for up to 10 years.

"The new VT R&D tax credit program is a great benefit, when coupled with the Federal R&D tax credit, and together the programs will benefit the cash-flow profile of many local companies here in VT," commented Jeffrey Feingold, Managing Partner of Tax Point Advisors, a national tax credit consulting firms with offices throughout the U.S.  The firm assists CPA's and their clients in identifying, documenting, and claiming both Federal and state R&D tax credits.  Feingold added that "many small and mid-sized local and regional companies qualify for R&D tax credits, and many don't realize that they do qualify.  Under the current, expanded definition of R&D for tax purposes, companies with tools, dies, jigs, molds, fabrication, package design, product development, engineering services, precision machining, customization of products and customized projects, job shops of all sorts, all these types of activites and the companies conducting them typically qualify for often significant, six-figure R&D credits."  

Tax Point Advisors
1-800-260-4138
www.taxpointadvisors.com

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Tax Point Advisors assists CPA's & their clients in identifying & capturing their maximum R&D tax credits. WE HAVE A 100% SUCCESS RATE, NEVER HAVING HAD A CLAIM DENIED. 1 (800) 260-4138, www.taxpointadvisors.com