Recent Updates………….. Section 174 (Path Act 2016)
Tax amortization & duration • Elimination of early deduction of expenses (year incurred or paid) • Required amortization • Acceleration of US domestic expenses & costs vs. external to US expenses & costs • Higher administrative & documentation burden: Greater tracking and supporting detail of documentation & expenses, including but not limited to: • Where was the effort completed (in the US, outside the US) • What activities were included • What was the cost • What was the skill set involved
Before 2022 • Deduct expenses in the year incurred or paid • OR capitalized & amortize over at least 5 years 2022 and After • Capitalize all R&D costs & amortize o Over 5 years for US o Over 15 years outside of the US • Additional information for refund claims • Business components • Research activities • Total qualified employee wage expenses, supply expenses & contract research expenses
R&D TAX CREDIT. //
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