Manufacturers can breathe a sigh of relief. The Tax Increase Prevention Act was signed into law by President Obama last Friday night. It calls for a one-year extension of the Research and Development (R&D) tax credit, which expired on Dec. 31, 2013. The extension is retroactive to Jan. 1, 2014 and is good through Dec. 31, 2014.
That was the good word from the Black Line Group, a national provider of R&D tax credit services (www.blacklinegrp.com).
Earlier this month, the White House had threatened to veto to the budget deal that was a bipartisan effort, which would have put business tax credits on hold. The R&D tax credits was part of what is known as "extenders" in D.C. speak - tax breaks that are typically renewed every year or two, but have bipartisan backing. Now that budget has been passed, the R&D tax credits have been "extended" retroactively to the beginning of the year.