R&D Tax Credit News

As 2021 winds down, there have been significant changes throughout the year surrounding the R&D Credit on both the State and Federal level. We have compiled a list of ten changes and potential upcoming changes to note heading into 2022.

While this list does not highlight every law enacted or proposed, it reflects our perspective on the most impactful changes for taxpayers.

Federal

• IRS Adds Requirements for Taxpayers Seeking R&D Credit Refunds
• Research amortization requirement from the TCJA will impact R&D expenses starting in 2022.

Connecticut

• Limitation increase and carryforward period have been adjusted.

Florida

• State could increase cap on R&D Credits.

Hawaii

• Amendments made to Income Tax Credit for Research Activities established under Hawaii Revised Statutes section 235-110.91.

Maryland

• Effective April 13, 2021, Maryland makes significant changes to State R&D Credit and extends program through tax year 2025.

Michigan

• House proposes a bill to amend Income Tax Act of 1967.

Minnesota

• Representative proposing changes to create an “alternative simplified credit” that mirrors federal Credit.

Pennsylvania

• Deadline to apply for State Credit moves from September to December.

Texas

• Finalizes amendments retroactively for the Research & Development activities credit.