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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Corporate Tax

Date & Time
  • event Date

    Wednesday, September 7, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

$247.00
CPE
ALL

This course will review the research and development (R&D) credits offered by states. Our panel of state and local tax specialists will explain the credit requirements in specific states, review the federal guidelines for the R&D credit, and explain the process of applying for missed credits in prior years.

Faculty

Vivian Kohrs
Director
Cherry Bekaert Advisory, LLC

Ms. Kohrs is a Director in Cherry Bekaert’s Tax Credits & Incentives Advisory practice in the Tysons Office. With strong data and analytical skills, including the use of Alteryx, she helps the Firm with strategic developments of numerous firm wide engagement enablement tools. Ms. Kohrs has helped client teams establish their Research Tax Credit study process and achieve significant tax savings. Her focuses include research credit studies in the automotive, pharmaceutical, health & life sciences, aerospace and defense, financial institutions, manufacturing, and computer software industries. Additional areas of experience include Section 174 Research Expenditures, UNICAP, accrued bonus, inventory accounting, and other accounting method changes and associated calculations.

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Ronald G. Wainwright
Partner, Tax Credits & Incentives Advisory
Cherry Bekaert

Mr. Wainwright has more than 25 years of tax advisory experience and works with multi-national, public and closely held companies in several industries. He sits on the firm's Manufacturing and Distribution Team, and on the National Association of Manufacturers' Tax Steering Committee and Tax Policy and R&D Coalition.

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Derek Belza
Manager
Cherry Bekaert

Mr. Belza is a Manager in Cherry Bekaert’s Tax Credits & Incentives Advisory practice and is located in the Raleigh, NC office.

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Description

R&D credits are a valuable, often overlooked, tax incentive. Even small businesses making minor improvements to a product or process can qualify. As a tax credit rather than a tax deduction, the R&D credit can provide dollar-for-dollar tax savings for cash-strapped businesses. Companies that missed the credit in the past could be eligible to claim the credit retroactively.

Tax practitioners who only consider the federal R&D credit could be overlooking half the tax savings of this credit. Currently, more than 35 states offer an R&D credit. Many states follow the federal guidelines, but there are differences. Utah's R&D credit, for example, is the sum of three credits:

  • 5 percent of qualified expenses for increasing research activities in Utah above a base amount;
  • 5 percent of certain payments made to a qualified organization increasing basic research in Utah above a base amount; and
  • 7.5 percent of qualified research expenses in Utah for the current taxable year.

California does not allow an R&D credit to be carried back but does allow the credit to be carried forward indefinitely. Most states follow the federal definition of qualified research expenditures. SALT practitioners working with multistate businesses need to know which states offer this valuable credit and the states' eligibility requirements.

Listen as our panel of SALT experts provides specific state examples of the R&D credit for advisers working with multistate businesses.

Outline

  1. The Research & Development Credit
  2. Federal R&D credit
  3. Specific state R&D Credits
    1. California
    2. Connecticut
    3. Florida
    4. Georgia
    5. Maryland
    6. Massachusetts
    7. Michigan
    8. New Jersey
    9. Ohio
    10. Pennsylvania
    11. South Carolina
    12. Texas
    13. Utah
    14. Vermont
    15. Virginia
  4. Retroactive application for R&D credits

Benefits

The panel will cover these and other critical issues:

  • How the R&D credit operates in different states
  • Examples of eligibility requirements for the R&D credit in specific states
  • Which taxpayers could be eligible to take the R&D credit in prior years
  • Differences between the federal and certain state R&D credits

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify federal eligibility requirements for R&D credits
  • Determine qualifications for the New York Excelsior R&D credit
  • Decide specific states offering R&D credits
  • Ascertain which companies could be eligible for R&D credits in prior years

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of SALT taxation, nexus and apportionment as it applies to multi-state businesses.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.