It’s not often that you hear, “Hi, we’re from the federal government, and we’re here to help you,” and it turns out to be true. But this time it is. Finally, after many years of renewing the “temporary” R&D tax credits—sometimes retroactively—Congress did the right thing and gave the tax credits permanent status. Now it’s up to each of you out there in the processing and moldmaking industries to take advantage of this, without worrying whether or not you’ll actually be getting this credit if Congress gets in a budget snit.
Now that the R&D Tax Credit has been made permanent—which is “huge news,” commented Scott Schmidt of the Black Line Group, a company that provides consulting services to manufacturers—it will provide even small manufacturers the opportunity to reduce their tax liability. But, says Schmidt, there is even bigger news ahead in 2016. “The Alternative Minimum Tax (AMT) was a big roadblock for many, but now that limitation goes away, which means tons of shareholders of S corporations/flow-through entities will now be able to use credits!” Schmidt exclaimed.
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