Arizona Adds to R&D Tax Credit Benefit for Arizona Businesses
Arizona increases the research tax credit to provide an additional 10% tax credit on basic research payments made to Arizona Universities. "This is a significant opportunity for both Arizona universities and Arizona companies," said Randy Eickhoff.
Nov. 18, 2011 - PRLog -- SIMI VALLEY, CALIFORNIA
Arizona continues to lead the other states in their drive to foster innovation and R&D efforts for companies located in the state. In early 2011, Governor Jan Brewer signed into law HB2001 – Arizona’s Competitiveness Package. Under this new law, Arizona companies making basic research payments to Arizona state universities can generate additional R&D tax credits. This additional tax credit is equal to 10% of the excess basic research payments made over the base amount.
“This is a tremendous opportunity for Arizona companies to utilize Arizona resources, provide learning opportunities for students and help drive their own growth”, says Randy Eickhoff, C.P.A. & President of Acena Consulting, LLC. “US companies are competing today against not only domestic competition but foreign companies as well in a growing global marketplace. Most developed nations provide a larger incentive for R&D efforts than the US; it’s great to see Arizona stepping up and helping companies located in their state compete for marketshare through tax incentives like the R&D tax credit.”
In addition to the new credit allowed for basic research payments to Arizona universities, the state already offers a lucrative refundable research tax credit if companies act quickly. “Arizona allocates $5 million each year to be available for refunds of the R&D tax credit to companies that generate more credits than they need to pay their tax liability. Companies can elect to receive 75% of the excess R&D tax credits as a refund, when the $5 million is exhausted, companies may not make that election and must carry forward any unused tax credits,” noted Mr. Eickhoff. “This refund is on top of a 24% research tax credit, again, one of the highest R&D credits available in the US. We enjoy working with Arizona companies because we are able to help them in their growth strategies through the tax incentives we generate.”
About vcjut Acena Consulting, LLC
Acena Consulting, LLC is a tax consulting firm specializing in helping companies document and maximize tax incentives. Headquartered in Simi Valley, CA, Acena works with both CPA firms and their clients to educate document monetize and defend research tax credits, IC DISCs, cost segregation studies, DPAD and telephone excise tax studies. Randy Eickhoff is a licensed CPA in California and is the founder and President of Acena Consulting, LLC.
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Specialty tax, accounting and operational consulting firm focused on helping companies and their CPAs maximize the value of tax credits and specialty tax incentives. Our experience and depth provide our clients with a competitive edge in a global economy.