Is it time to revisit the R&D credit?

Description

Abstract: The federal tax credit for increasing research and development activities — popularly known as the R&D credit — can be a valuable break for manufacturers. Eligible companies can reduce their tax liability by as much as 7.9 cents (or more if state research credits are available) for each dollar of qualified research expenditures on wages, supplies, consulting fees and contract research. This article looks at why, unfortunately, many manufacturers lose out because they underestimate their R&D expenditures or believe their taxable income is too low to make it worthwhile.