U.S. Treasury Department finalizes the changes to R&D tax code. U.S. tax code reform broadens the spectrum of research that deserves federal subsidies. Due to new code Boeing, Lockheed Martin and many smaller firms could reap hundreds of millions of dollars in fresh savings. Further, new tax benefits will be retroactive, permitting firms to reduce tax bills dating back years. Under current rules the IRS forbids companies from claiming tax breaks for costs associated with experimental products they ultimately sell. Yet, the research credit and related breaks save firms already more than $12 billion a year. Both parties support the amendment. However, some experts argue that it rewards business activity that likely would have occurred anyway and is therefore purposeless.
For more, click here.
14th March 2019