Cash in if you can on the extended tax carryback
Abstract: The Small Business Jobs Act (SBJA), enacted last year, contains a prime tax-saving opportunity for contractors. An SBJA provision includes an extended five-year “carryback” for general business tax credits to offset both regular tax liability and alternative minimum tax liability. The provision applies to sole proprietorships, partnerships and nonpublicly traded corporations that have $50 million or less in average annual gross receipts over the three preceding tax years. This article describes how the carryback works.