Follow on Google News News By Tag Industry News News By Place Country(s) Industry News
Follow on Google News | Arizona Research Credit Improvement Brings Additional Capital to Small and Medium Sized BusinessesArizona Governor Jan Brewer has signed into law a modification to the current research tax credit. This change will allow small technology companies to receive a refund of 75% of their eligible tax credit
By: Randy Eickhoff, CPA, President, Acena Consulting Randy Eickhoff, President, Acena Consulting, "This is a signficant change to an important incentive for Arizona companies. In today's market, it isn't enough for a company to create a good product. Today, innovation that creates new products, improves on old products and opens new markets as a part of a growth strategy is paramount to staying competitve. It is important for Arizona's government to support the people driving their economy and the R&D tax credit improvement demonstrates that support." The new law will take effect for tax years beginning after December 31, 2009 and will be limited to $5 million per year. The refund opportunity must be submitted to the Department of Commerce for qualification and approval and is available for companies with less than 150 employees. R&D Credits apply to companies developing or improving on products, processes, formulas, software, techniques or inventions. As such, industries impacted by this change will include Aerospace/Defense, Healthcare, Technology, Semiconductor, Agriculture, Manufacturing, Software, Capital Equipment and Engineering- With one of the most lucrative R&D tax credits in the US, Arizona has seen significant success in its utilization by both businesses and individual taxpayers. According to the Department of Revenue, in 2007, 185 corporate taxpayers claimed $43.8 million while 161 individual taxpayers claimed $2.6 million in R&D credits. # # # About Acena Consulting As a specialty tax, accounting and operational consulting firm focused on helping companies and their CPAs maximize the value of tax credits and specialty tax incentives, Acena Consulting delivers experience, technical expertise and a streamlined process to help our clients maximize R&D tax credits, export incentives and other mission critical tax incentives. Our experience and depth provide our clients with a competitive edge in a global economy. End
Account Email Address Account Phone Number Disclaimer Report Abuse
|
|