Apply the research tax credit against payroll tax
Abstract: The rules have changed regarding the ability of small businesses that engage in research and development (R&D) to use the research tax credit. The change stems from the Protecting Americans from Tax Hikes (PATH) Act, which was enacted in 2015. This article discusses how eligible businesses can take advantage of this valuable credit, according to the IRS guidance (Notice 2017-23). A sidebar shows what businesses must do to claim the research and development credit.