Intrepid Advisors Anticipates Larger Demand Due To More Businesses Benefiting From New Law On Research Tax Credit

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New tax law will be a boon for Intrepid Advisors due to the law becoming permanent, and two new provisions.

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Intrepid Advisors LLC

This new tax law helps all businesses continue to innovate.

Intrepid Advisors expects business to expand to include not only more business from its existing customer base, but also smaller businesses taking advantage of the permanent new law. The permanency will allow companies to better plan for the R&D tax credit, and the new provisions will allow smaller companies to benefit where they couldn't previously.

The U.S. Congress and President Obama approved a sweeping fiscal legislation package in December. The Senate passed the bill by a vote of 65-33, shortly after the House approved the legislation by a similar margin of 316-113. The legislation, entitled Protecting Americans from Tax Hikes Act of 2015, will finance the government through September 2016.

The previously temporary research tax credit has been extended 17 times since inception in 1981. Making the credit permanent will provide manufacturing and technology companies a measure of certainty about the benefits they can expect for their investments in innovation.

In addition to permanently extending the research credit, the legislation retroactively extends the credit from December 31, 2014 through 2015, and provides two important enhancements of the R&D credit for small businesses for tax years beginning after December 31, 2015: shareholders of flow-thru entities such as S-corporations and LLCs will now be able to use the credit to offset alternative minimum tax (AMT), and start-up businesses can use the credit to offset payroll taxes.

Intrepid Advisors is a consulting firm specializing in research and development tax credits, helping America’s small and medium-size businesses grow by recovering funds through federal and state research and development tax credits to manufacturing and technology companies such as software development, engineering, pharmaceutical and biotech.


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Stephen Powers
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