 | FEATURED ARTICLE It's Back! The New Hampshire R&D Tax Credit - NH High Tech News In 1995 the credit was repealed; however as of July 2, 2007, SB 134 was passed allowing New Hampshire companies that qualify for the R&D tax credit under the Sections 41 and 174 of the IRS tax code to apply for a state tax credit. This credit can be applied against the business profits tax and the business enterprise tax. The good news doesn’t stop there. If you attempted to file for the Federal R&D tax credit in the past, but didn’t qualify due to hurdles around your Fixed Base Percentage (FBP) calculation – starting with the 2007 tax year the Feds have simplified this piece of the credit calculation. So sharpen your pencils and take another look. This year your company might benefit from both the federal and state R&D tax credits.
The following is an overview of how the NH lawmakers structured the R&D tax credit for those that qualify under the federal guidelines:
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July 11, 2008 GM, Ford urge Congress to extend R&D tax credit: [By David Shepardson / Detroit News Washington Bureau] WASHINGTON -- General Motors Corp. and Ford Motor Co. joined 300 major companies in urging the U.S. Senate to renew the tax credit for research and development. In a letter to Sen. Majority Leader Harry Reid, D-Nev., and all 100 senators released Tuesday, the companies urged quick action, since the tax credit expired at the end of 2007. A broad tax bill that would have extended the tax credit failed by 10 votes today. "Failure by Congress to move quickly to extend these important provisions will bring investment in renewable energy and energy efficiency projects to a standstill, make it more difficult for U.S. companies to invest in critical R&D projects in this country, reduce private sector investment in business and economic development projects in distressed areas, and force many U.S.-based financial institutions to suffer a massive tax increase at a time when they can least afford it," the letter said.
 CLICK HERE TO READ THE FULL ARTICLE >> June 23, 2008 Research and Development Tax Credit Improvement Act of 2008 - S.2884 R&D Tax Credit Bill: S.2884 - Federal Government - A bill to amend the Internal Revenue Code of 1986 to provide incentives to improve America's research competitiveness, and for other purposes.
Research and Development Tax Credit Improvement Act of 2008 - Amends the Internal Revenue Code to revise the tax credit for increasing research activities by: (1) phasing in increases in the alternative simplified tax credit rate through 2009; (2) establishing a 20% alternative simplified tax credit rate in 2010 in lieu of the standard research tax credit rate; (3) increasing the amount of basic and contract research expenses eligible for such tax credit; and (4) extending such credit through 2012. [For detailed list of current Tax Bills in Congress, visit: www.theorator.com] CLICK HERE TO READ THE FULL ARTICLE >> June 17, 2008 BLOG: New Report Confirms R&D Credit Boosts Jobs & Economy A new report was just released confirming R&D Credits boost the economy and jobs. As state-by-state study shows 70% of R&D Credit goes directly to fund high-skilled job growth which validates a clear need for Congress to restore the expired credit now.
CLICK HERE TO READ THE FULL ARTICLE >> April 24, 2008 BLOG: McNerney Introduces Bill To Simplify, Extend Research & Development Tax Credit Congressman Jerry McNerney (CA-11) introduced legislation to encourage research and development that creates jobs and boosts America’s economy by simplifying and making permanent the Research and Development Tax Credit.
CLICK HERE TO READ THE FULL ARTICLE >> April 2, 2008 BLOG: Bush ’09 Budget Would Make R&D Tax Credit Permanent President Bush’s 2009 budget proposal includes a number of tax provisions including making the research and development tax credit permanent.
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March 17, 2008 BLOG: Tim Walberg calls for Research and Development Tax Credit Four Freshman Republicans Fight For Research and Development Tax Credit.
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October 19, 2007 Introduction of "Research Credit Improvement Act of 2007" - Statement of Senator Orrin G. Hatch Mr. HATCH. Mr. President, I rise today to join with my friend and colleague from Montana, Senator Baucus, to introduce the Research Credit Improvement Act of 2007. We are joined by a bipartisan group of our Finance Committee colleagues: Senators Cantwell, Crapo, Kerry, Smith, Lincoln, and Snowe. As its title suggests, the purpose of this legislation is to extend permanently and to improve the research credit, which is set to expire in just a short time, at the end of 2007.
Our Nation has benefited greatly in recent years from strong economic growth. I believe it is vital for all Americans to realize that this economic growth did not just happen by accident. Rather, it is based on several factors, and one of the more important of these is innovation.
Innovation certainly does not just happen either. It is the result of several specific ingredients. And chief among those ingredients is the amount of research and development occurring in the economy. Where does R&D come from? It comes from individuals, companies, and governments who are willing to invest time and money.
Research and development is very expensive for companies to undertake. By its very nature, research activities seldom result in success immediately. There are many dead ends and much frustration on the way to the discovery of a product that can lead to profits.
CLICK HERE TO READ THE FULL ARTICLE >> September 13, 2007 Expanding the R&D Tax Credit to Drive Innovation, Competitiveness and Prosperity The U.S. economy faces a new and formidable competitiveness challenge. Not only has the emergence of a global economy led to the creation of robust new economic competitors, but within the last decade many nations, including most of Southeast Asia and Europe, have made innovation-led economic development a centerpiece of their national economic strategies. Their aggressive use of research and development (R&D) tax incentives is just one indicator of that commitment. Unfortunately, the United States has not kept pace.outheast Asia and Europe, have made innovation-led economic development a centerpiece of their national economic strategies. Their aggressive use of research and development (R&D) tax incentives is just one indicator of that commitment. Unfortunately, the United States has not kept pace.
Addressing this new competitiveness challenge will require policy makers to take a host of steps, including improving education and significantly increasing funding for research. Yet while these steps are necessary, they are not sufficient to win the competitiveness challenge. Policy needs to do more than boost the supply of innovation resources (e.g., a better trained workforce and increased basic research discoveries); it must also spur demand by companies to locate more of their innovation-based production in the United States.
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August 17, 2007 The Rise and Spread of State R&D Tax Credits
Tax credits for spending on research and development (R&D) were first enacted into federal law in the U.S. in 1981. In the ensuing quarter century, many states have adopted such tax credits, often using the federal tax credit as a model. This Economic Letter reports on recent research (Wilson 2005a) that quantifies the development of state tax credits for R&D, a challenging task because historical information is not readily available in a single data source and because of the variations in each state's law regarding deductibility and other specifics. Wilson finds that state tax credits are almost as important, in terms of the cost of conducting R&D, as federal tax credits. In addition, he finds that cross-state differences in the R&D cost are overwhelmingly due to differences in the effective value (to firms) of the state R&D tax credits. The results of these cost measurements also reveal a striking twin pattern of a rise in the average generosity of state R&D tax credits and a rapid spread of their availability across states.record). CLICK HERE TO READ THE FULL ARTICLE >> June 21, 2007 States’ Tax Credits for Company-Financed Research - A Current Comparison By B. Anthony Billings FEBRUARY 2007 - Most state governments offer a variety of tax incentives to stimulate research and experimentation (R&E, used interchangeably with research and development, R&D) within state borders. Companies seeking to locate or relocate their R&E facilities can benefit from knowing what business incentives, such as state R&E credits, particular states offer. This article uses sales and R&D expenditures from the 3M Company’s published financial statements to simulate the effective rates of R&E credit for states that have some form of R&E tax incentive.
The statutory rate of credit offered by the 40 states that have such a credit ranges from 0.75% to 22.5% of qualified costs. To compare the states in more detail, they are separated into three groups, with states having the same or similar provisions included in the same group. CLICK HERE TO READ THE FULL ARTICLE >> Click here to read our old news from 2006
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