R&D Tax Credits: Value for 2014 and Beyond

As the Research and Development (R&D) Tax Credit extension gains ground, its benefits to the oil and gas industry, on both a federal and state level, are further highlighted. 

The Democrat-led U.S. Senate Finance Committee made the first steps in April 2014 to extend the R&D Tax Credit through the 2015 tax year. Then following in May, a bill was approved by the Republican-led House of Representatives that would make it permanent. The House bill still requires full Senate approval and the president’s signature, but based on the current widespread political support, it seems as though the proposed extension will either temporarily or permanently become law in the near future.

In the Oil and Gas Financial Journal article R&D Credits: Tax Savings Value for 2014 and Beyond Weaver’s Robert Henry, partner in tax and strategic business services, dives into the details of the research and development tax credit:

• Federal direction for defining R&D activity
• Calculation methods for the R&D tax credit
• Available state R&D credits, including Texas
• Steps for capturing R&D tax benefits
• Potential tax return examination concerns
• The R&D tax credit supports long-term business aims