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Businesses get some breaks.(2007 business tax breaks extened to 2008)
Several business tax breaks expired at the end of 2007 or were scheduled to expire at the end of 2008. The new law extends some of those tax benefits:
* Research credit. The new law restores the research credit for 2008 and 2009. This credit generally is 20% of incremental research expenses.
In 2007, there had been two other ways to figure the research credit besides the 20% solution: an alternative incremental research credit and an alternative simplified credit. Under the new law, the alternative incremental research credit has been repealed. Moreover, the alternative simplified credit has been increased to 14% of qualified research expenses that exceed 50% of the average qualified research expenses for the three preceding years. In 2007, the credit percentage had been 12%.
* Amortization for leasehold and restaurant improvements. The 15-year amortization period for qualified leasehold and qualified restaurant improvements was extended for 2008 and 2009. Without this special treatment, such expenditures must be depreciated over 39 years. The same 15-year amortization period applies to certain improvements to retail space in 2008 and 2009.
* New markets credit. This credit, which is designed to encourage investments and loans to small businesses located in economically distressed areas, has been extended for 2008 and 2009.
* Deduction for energy-efficient commercial building property. The deduction for owners of commercial building property had been set to expire at the end of 2008; it has been extended through 2013. The deduction may be as much as $ 1.80 per square foot for a building that meets certain energy usage standards. There is a modified deduction of 60 cents per square foot for a commercial building that attains some measure of energy efficiency but not enough to warrant the $1.80 per square foot deduction.
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- Tax Relief: 2006 Tax Relief & Health Care Act highlights favorable to...
- Magazine article from: California CPA Josephs, Stuart R. March 1, 2007 700+ words
...into law Dec. 20, 2006. RESEARCH CREDIT This credit is extended for...2005 and before 2008. The new law also modifies the research credit for tax years ending after...allowable without regard to this new law is not refundable. However...
- Continuing uncertainty on research credit definition of "gross receipts".
- Magazine article from: The Tax Adviser Wiles, Dan Perez, Ruth July 1, 2004 700+ words
...of "gross receipts" for Sec. 41 research credit purposes in the affiliated group context...expenditures are compared in computing the research credit. Background Chief Counsel Advice...the taxpayer's gross receipts for research credit purposes. In light of Sec. 41...
- Research credit extended.
- Magazine article from: The Tax Adviser Mondoro, Anthony J., Jr. Hudson, David January 1, 2009 700+ words
...awaited extension of the Sec. 41 research credit arrived in the Emergency Economic...President Bush signed it into law. The research credit had expired for amounts paid or incurred...however, EESA retroactively extends the research credit to amounts paid or incurred after...
- Affect of research credit final regs. on documentation.
- Magazine article from: The Tax Adviser King, Kathleen L. June 1, 2004 700+ words
The research credit final regulations (TI) 9104...Background Prior versions of the research credit regulations contained specific...Sec. 1.41-4(d). The research credit final regulations retain this general...
- Enhanced research credit for 2007.
- Magazine article from: The Tax Adviser Arkin, Steven D. Goldbas, Michael March 1, 2007 700+ words
...not only extends for two years the research credit provisions previously in effect through...current-law alternative incremental research credit (AIRC) rates of 2.65%, 3.2...Date These two "expansions" of the research credit are effective prospectively only...
- Research credit AMT carryovers and carrybacks.
- Magazine article from: The Tax Adviser Conley, James B. January 1, 1992 700+ words
Under Sec. 41(g), the research credit computed under Sec. 41(a...post-1985 tax years, the research credit is part of the Sec. 38 general...1985 tax year in which a research credit is generated, the Sec. 38...
- A permanent research credit.(response to Kenneth C. Wang, 'Issues' Winter...
- Magazine article from: Issues in Science and Technology Perlman, Robert H. Tassey, Gregory Doremus, Paul March 22, 1999 700+ words
...opportunity to comment on "Fixing the Research Credit" by Kenneth C. Whang (Issues...existence is uncertain, the current research credit has not been totally effective in...In our view, the foremost goal of research credit legislation must be permanence, so...
- Congress extends, amends research credit.
- Magazine article from: Journal of Accountancy Nevius, Alistair M. January 1, 2009 700+ words
...extension of the IRC [section] 41 research credit. The credit had expired at the end...Act made a couple of changes to the research credit: The credit rate under the alternative...Also the alternative incremental research credit (AIRC) is eliminated for tax years...
Source: HighBeam Research, Businesses get some breaks.(2007 business tax breaks extened to 2008)