If you do not already have a KPMG Institutes account you must first create an account to register for this event.
The research credit has finally been made permanent, 34 years after its original, temporary enactment! On December 18, 2015, President Obama signed into law the Consolidated Appropriations Act, 2016 (the 2016 Act). The 2016 Act seamlessly reinstated the credit retroactively for qualified research expenses (QRE) paid or incurred on or after January 1, 2015.
The 2016 Act also reinstated the Eligible Small Business Credit (ESBC) for tax years beginning after 2015. The ESBC applies to certain businesses (nonpublic corporations, S corporations, partnerships, or sole proprietorships) with average annual gross receipts of $50 million or less allowing them to offset their alternative minimum tax (AMT) liability with the credits.
Additionally, the 2016 Act also provides that for tax years beginning after 2015 certain start-up companies, defined as a “Qualified Small Business” (QSB), may elect to apply up to $250,000 of their research credit against their payroll tax liability instead of their income tax liability. The payroll tax offset, up to a maximum of $250,000, is available to offset the employer’s portion of the payroll tax in the first two quarters after the 2016 tax return is filed; therefore, this benefit starts in 2017 for a QSB.
Please join KPMG’s Research Credit Services professionals as they provide an overview of the research tax credit and best practices that small business and start-up companies can implement. Topics for discussion include:
Overview of the RD Tax Credit, qualifying activities, eligible qualified research expenses (QREs) and credit calculation elections and methodologies
The AMT offset
The payroll tax liability offset
KPMG’s Private Markets Group You know KPMG, but you might not know KPMG’s Private Markets Group. We are dedicated to working with businesses like yours. Whether you are an entrepreneur, family business, or fast-growing company, we understand what is important to you. By providing industry perspectives and proactive guidance, our PMG professionals help privately owned companies achieve their strategic objectives throughout each stage of the business life cycle. Our global network provides integrated audit, tax, and advisory services wherever you grow your business. Learn more at kpmg.com/us/privatemarketsgroup.