Federal R&D Tax Credit Extended

The federal research income tax credit (Section 41) which expired December 31, 2009 has been extended for two more years through December 31, 2011 as part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act).

Taxpayers that have filed income tax returns that included periods after December 31, 2009 may file amended returns to claim the additional credit attributable to qualified research expenses incurred after December 31, 2009.  Company's that prepare quarterly financial statements will need to reflect the impact of the extension of the federal research credit during the quarter ending with the date the 2010 Tax Relief Act was signed by the President (December 2010). 

For additional information please contact Randy Bradford at randy@bcotax.com.